VRRR auction: RBI holds ₹2 lakh crore 29-day variable rate reverse repo
Why in the news
The Reserve Bank of India conducted a 29-day Variable Rate Reverse Repo (VRRR) auction of ₹2 lakh crore on Thursday, 8 October 2026, to absorb surplus funds from the banking system. It was announced in a press release dated 7 October.
Key facts
- Facility: Liquidity Adjustment Facility (LAF).
- Notified amount: ₹2,00,000 crore.
- Tenor: 29 days.
- Window: 9:30 AM to 10:00 AM.
- Reversal date: Friday, 6 November 2026.
- Early reversal: Participants may reverse funds early, fully or partly, by placing a request on the E-Kuber portal at least two working days before the original reversal date.
About VRRR
Under a VRRR, banks park surplus money with the RBI for a fixed tenor at a rate set through auction bids. The RBI uses it to absorb surplus liquidity from the banking system. The auction came a day after the RBI raised the repo rate by 25 bps to 5.50% on 7 October 2026.
Exam angle
- VRRR is a liquidity absorption tool under the LAF.
- Early reversal requests go through the RBI’s E-Kuber portal.
- Remember the numbers: ₹2 lakh crore, 29 days, reversal 6 November 2026.