RBI VRR auction: ₹1 lakh crore 7-day repo; ₹33,000 crore G-sec sale set
Why in the news
The Reserve Bank of India (RBI) injected about ₹1 lakh crore into the banking system through a 7-day Variable Rate Repo (VRR) auction on 19 October 2026. It also announced an overnight VRR auction and a ₹33,000 crore auction of Government of India dated securities.
Key facts
- 7-day VRR (19 October 2026): notified amount ₹1,00,000 crore; bids received ₹1,50,735 crore; amount allotted ₹1,00,014 crore.
- Cut-off rate: 5.51%; weighted average rate 5.52%; bids at the cut-off received partial allotment of 56.04%.
- Overnight VRR (21 October 2026): ₹50,000 crore, window 9:30 am to 10:00 am, reversal on 22 October, held after RBI reviewed current and near-term liquidity.
- G-sec auction (Friday, 23 October 2026): two re-issued securities totalling ₹33,000 crore, with settlement on Monday, 26 October.
| Security | Maturity | Notified amount |
|---|---|---|
| 6.53% GS 2031 | 7 September 2031 | ₹19,000 crore |
| 7.71% GS 2066 | 18 May 2066 | ₹14,000 crore |
| Total | – | ₹33,000 crore |
About the auctions
A VRR is a liquidity tool under the Liquidity Adjustment Facility (LAF): banks bid for funds against government securities, and the rate is set by the auction rather than fixed at the policy repo rate. The G-sec sale uses a multiple price method, meaning winning bidders pay their own quoted prices. The government may keep extra subscription of up to ₹2,000 crore for each security (greenshoe). Up to 5% of each notified amount is reserved for non-competitive bids from eligible individuals and institutions.
Exam angle
- Know the difference between a VRR (injects liquidity) and a VRRR (absorbs liquidity).
- Remember the figures: ₹1,00,014 crore allotted at 5.51% cut-off.
- Multiple price auction versus uniform price auction is a common banking question.