On October 19, 2026, the Reserve Bank of India conducted a 7-day Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility, allotting ₹1,00,014 crore at a weighted average rate of 5.52%. The cutoff rate was set at 5.51%, with partial allotment at 56.04% for bids at the cutoff.
RBI Conducts 7-Day VRR Auction, Allots ₹1,00,014 Crore
The Reserve Bank of India (RBI) conducted a 7-day Variable Rate Repo (VRR) auction on October 19, 2026, as part of its liquidity management operations under the Liquidity Adjustment Facility (LAF). The auction was notified for ₹1,00,000 crore, but due to overwhelming demand, bids totaling ₹1,50,735 crore were received.
The final amount allotted stood at ₹1,00,014 crore, with a weighted average rate of 5.52%. The cutoff yield was set at 5.51%. For bids placed at the cutoff rate, the allotment was partially met at 56.04%, indicating strong systemic demand for short-term liquidity. The reverse leg of the repo will be reversed on October 26, 2026.
This operation reflects the RBI’s calibrated approach to managing liquidity amid evolving macroeconomic conditions. For market participants, the slight premium in the weighted average rate over the cutoff signals competitive bidding pressures. The auction results are indicative of stable but tight short-term money market conditions.
