5 Oct VRRR oversubscribed: ₹2.11 lakh crore bid, ₹2 lakh crore taken
Banks offered ₹2,10,688 crore for the ₹2,00,000 crore on offer. RBI accepted ₹2,00,050 crore at 5.24%, taking 94.36% of bids at the cut-off.
Official title: Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on October 05, 2026 · Press Release 2026-2027/1243
What happened
RBI held the 1-day VRRR auction on 5 October 2026. It had offered to borrow ₹2,00,000 crore. Banks offered ₹2,10,688 crore, RBI accepted ₹2,00,050 crore, and the cut-off rate and weighted average rate were both 5.24%.
This is the first auction in this batch with more offers than the amount sought, so banks had plenty of spare cash.
Offers at exactly the cut-off rate added up to more than RBI needed, so only 94.36% of those offers was accepted. In plain words, those banks got about 94.36 paise for every rupee they offered.
What it means for you
No direct effect on your deposits, loans or EMIs. It is an operation between RBI and banks.
What it means for businesses
This shows banks and treasuries what return they can get for parking cash with RBI. For businesses and borrowers there is no direct change.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.