RBI to borrow up to ₹3 lakh crore overnight on 7 Oct
The biggest overnight VRRR in this run: up to ₹3,00,000 crore on 7 October, in a later 12:00 to 12:30 PM window.
Official title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 07, 2026 · Press Release 2026-2027/1262
What happened
RBI will hold a overnight Variable Rate Reverse Repo (VRRR) auction on Wednesday, 7 October 2026. It wants to borrow up to ₹3,00,000 crore from banks. Bids can be placed between 12:00 noon and 12:30 PM, and the money goes back to the banks on Thursday, 8 October. The release says only that this follows a review of current and evolving liquidity conditions.
The amount is up again, from ₹2,50,000 crore, and the window is later than the usual 9:30 AM slot. The release gives no reason for either change.
What it means for you
No direct effect on your deposits, loans or EMIs. This is an operation between RBI and banks.
What it means for businesses
Banks and other eligible bidders decide whether to lend their spare cash to RBI at the auction rate. For businesses and borrowers there is no direct change.
Links in this release, explained
- RBI press release of 13 February 2020 on VRRR operating rules
The February 2020 RBI release that set out the standard rules for variable rate auctions: who can bid, how bids are ranked and how the cut-off rate is set. Open it only if you want the mechanics; this auction follows it.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49399
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.