The Reserve Bank of India conducted a 4-day Variable Rate Repo (VRR) auction on October 26, 2026, allotting ₹1,50,007 crore at a cut-off rate of 5.55%. The weighted average rate stood at 5.59% with partial allotment at the cut-off.
RBI Conducts 4-Day Variable Rate Repo Auction
The Reserve Bank of India (RBI) conducted a 4-day Variable Rate Repo (VRR) auction on October 26, 2026, under the Liquidity Adjustment Facility (LAF), allotting ₹1,50,007 crore against a notified amount of ₹1,50,000 crore. The cut-off rate was set at 5.55%, with a weighted average rate of 5.59%.
Total bids received amounted to ₹1,86,666 crore, significantly exceeding the notified amount. Bids at the cut-off rate were partially allotted at 85.07%. The auction reversal date is October 30, 2026. This operation reflects the RBI’s calibrated management of short-term liquidity in the system.
Such VRR operations are part of the RBI’s monetary policy toolkit to manage intra-month liquidity fluctuations. For legal practitioners, particularly in banking and financial regulation, these operations signal the central bank’s stance on monetary transmission and liquidity conditions, which may indirectly influence credit risk and lending rate benchmarks under regulatory frameworks.
