RBI notifies a 10-day variable rate reverse repo auction of ₹1,50,000 crore
9 October 2026
The Reserve Bank of India will conduct a 10-day Variable Rate Reverse Repo (VRRR) auction for a notified amount of ₹1,50,000 crore on Friday, October 09, 2026.
The auction window is from 09:30 AM to 10:00 AM and the date of reversal is Monday, October 19, 2026.
The Reserve Bank said the decision follows a review of liquidity conditions in the banking system.
The auction is conducted under the Liquidity Adjustment Facility, through which the Reserve Bank absorbs or injects funds.
A reverse repo auction absorbs surplus liquidity from banks, with the rate discovered through competitive bidding rather than fixed in advance.
Operational guidelines remain those set out in the Reserve Bank's press release of February 13, 2020.
The release carries the reference 2026-2027/1288 and is dated October 08, 2026.
In plain words
VRRR Variable Rate Reverse Repo — An auction in which banks park surplus funds with the Reserve Bank at a rate set by bidding.
LAF Liquidity Adjustment Facility — The Reserve Bank's window for daily absorption and injection of liquidity in the banking system.
Reverse repo Reverse repurchase agreement — A transaction in which the central bank borrows from banks against government securities.