Reserve Bank to conduct an overnight variable rate repo auction of Rs 50,000 crore
19 October 2026
The Reserve Bank of India announced on 19 October 2026 that it will conduct an overnight variable rate repo auction under the Liquidity Adjustment Facility. The notified amount is Rs 50,000 crore and the tenor is one day. The auction is to be held on Wednesday, 21 October 2026. The bidding window is open from 9.30 am to 10.00 am. Variable rate repo auctions are the Reserve Bank's main tool for injecting short-term liquidity into the banking system at a rate set by bidding rather than fixed in advance.
In plain words
LAF Liquidity Adjustment Facility — The Reserve Bank window through which banks borrow from or lend to the central bank for short periods.
VRR Variable Rate Repo — A repo auction in which the interest rate is decided by bidding instead of being fixed in advance.