On October 22, 2026, the RBI conducted a 1-day Variable Rate Repo (VRR) auction under the LAF, allotting ₹50,006 crore out of ₹50,000 crore notified. The cut-off rate was 5.54% with a weighted average rate of 5.55%, amid total bids of ₹1,62,354 crore, indicating strong demand and tight liquidity conditions.
Overnight VRR Auction Result: October 22, 2026
The Reserve Bank of India (RBI) conducted a 1-day Variable Rate Repo (VRR) auction on October 22, 2026, under the Liquidity Adjustment Facility (LAF), allotting ₹50,006 crore—slightly above the notified amount of ₹50,000 crore. The auction attracted substantial demand, with total bids amounting to ₹1,62,354 crore, reflecting heightened liquidity absorption by the central bank.
The cut-off rate settled at 5.54%, while the weighted average rate stood at 5.55%. Notably, only 3.2% of bids submitted at the cut-off rate were partially allotted, signaling a sharply competitive bidding environment. This indicates that the RBI precisely calibrated the allotment to manage systemic liquidity without over-injecting funds.
The action follows the MPC’s recent meeting and is consistent with the RBI’s stance of maintaining liquidity at levels conducive to monetary transmission. For practitioners, especially in banking and finance, this reflects a tightening in short-term rates, potentially influencing interbank lending strategies and treasury operations.
