RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on October 22, 2026
RBI 1 hr ago·21 Oct 2026, 1:55 pm
Economy RBI
The Reserve Bank of India (RBI) has announced an Overnight Variable Rate Repo (VRR) auction for October 22, 2026. This auction allows the central bank to inject liquidity into the banking system for a single day, with the operation reversing on the following business day.
This move is a standard tool used to manage short-term liquidity fluctuations. By offering a one-day window, the RBI aims to ensure that banks have enough funds to meet their daily operational needs without resorting to expensive market borrowing.
Investors should monitor the repo rate announced during this auction. A higher rate signals tighter liquidity, while a lower rate indicates ample funds. This action provides a snapshot of the RBI's current view on the immediate money market conditions.
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