RBI accepted ₹18,133 crore in a 3-day Variable Rate Reverse Repo auction at a uniform rate of 5.49%, indicating tight liquidity absorption.
RBI Absorbs ₹18,133 Crore via 3-Day VRRR at 5.49%
The Reserve Bank of India conducted a 3-day Variable Rate Reverse Repo (VRRR) auction on November 06, 2026, with a notified amount of ₹25,000 crore. The auction resulted in acceptance of ₹18,133 crore at a uniform cut-off and weighted average rate of 5.49%.
Reverse repo operations are used to absorb excess liquidity from the system, typically when surplus cash pressures short-term interest rates below the policy corridor’s lower bound. The partial participation (72.5%) suggests banks had surplus liquidity but chose selective participation.
The uniform rate mechanism ensures all successful bidders receive the same return, enhancing predictability. This operation aligns with the RBI’s stance of maintaining liquidity neutrality and supporting monetary policy transmission through the LAF corridor.
