RBI to conduct 29-day Variable Rate Reverse Repo (VRRR) auction under LAF
RBI 45 min ago·7 Oct 2026, 1:57 pm
Economy RBI
The Reserve Bank of India has announced a 29‑day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility, scheduled for Thursday, 8 October 2026. The auction will offer a notified amount of ₹2,00,000 crore, with bids accepted between 9:30 am and 10:00 am, and the funds will be reversed on 6 November 2026.
A reverse repo operation lets the RBI absorb excess cash from banks, helping to tighten short‑term liquidity and influence overnight interest rates. By setting a variable rate, the central bank can gauge market demand for safe, short‑term assets, which can affect money‑market yields and the cost of funding for financial institutions.
Investors should watch the actual reverse‑repo rate that emerges, the market’s reaction to the liquidity pull‑back, and any signals from the RBI about future LAF actions. The reversal date and subsequent policy statements will provide clues on the RBI’s stance on liquidity management and short‑term rate expectations.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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