The Reserve Bank of India conducted an overnight Variable Rate Reverse Repo (VRRR) auction on October 13, 2026. The RBI VRRR auction drew bids worth ₹71,580 crore against a notified amount of ₹1,50,000 crore. Banks showed moderate participation, and the RBI accepted all offers received.
Key Details of the RBI VRRR Auction
The auction carried a tenor of just one day. The cut-off rate and weighted average rate both stood at 5.49%. Additionally, the partial acceptance percentage was not applicable, as the RBI accepted every eligible bid in full.
Total offers received amounted to ₹71,580 crore. Therefore, the accepted amount also equalled ₹71,580 crore. This outcome indicates that banks did not exhaust the full ₹1,50,000 crore window the RBI had made available.
What This Means for Liquidity Management
The VRRR mechanism allows the RBI to absorb excess liquidity from the banking system. As a result, it helps the central bank keep short-term rates aligned with its policy objectives. However, the lower-than-notified participation suggests that banks currently hold only moderate surplus funds.
Meanwhile, the 5.49% rate reflects prevailing overnight money market conditions. For example, this rate serves as a benchmark signal for short-term borrowing costs across banks. Analysts often track these auction results closely to gauge daily liquidity trends in the system.
Overall, the RBI VRRR auction outcome on October 13 points to a relatively balanced liquidity environment. The central bank continues to use these tools actively to manage monetary conditions. Investors and treasury teams should monitor upcoming auction results for further signals.
Auction Summary at a Glance:
- Tenor: 1 Day
- Notified Amount: ₹1,50,000 crore
- Offers Received: ₹71,580 crore
- Amount Accepted: ₹71,580 crore
- Cut-off Rate: 5.49%
- Weighted Average Rate: 5.49%
Source: RBI Press Releases (Press Release: 2026-2027/1317)
