RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 06, 2026
RBI 38 min ago·5 Oct 2026, 2:02 pm
Economy RBI
RBI will conduct an overnight variable‑rate reverse repo auction on Oct 6 under its Liquidity Adjustment Facility. The auction will target roughly ₹2.5 lakh crore for a one‑day tenor, with bids accepted from 9:30 am to 10:00 am and the funds to be reversed on Oct 7.
A reverse repo allows banks to park surplus cash with the RBI and earn the announced rate, thereby draining liquidity from the system. This tool helps the central bank manage short‑term money‑market rates, which can affect yields on government bonds and the risk sentiment in equities. Investors will watch the rate that emerges, any hints about future liquidity needs, and the subsequent movement in repo and Treasury‑bill yields.
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- Category: Economy.
- Flagged as a high-impact, market-moving story.
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