7 Oct VRRR: ₹2.56 lakh crore taken, rate jumps to 5.49%
Banks offered ₹2,55,827 crore against ₹3,00,000 crore sought. All was accepted, but at a cut-off of 5.49%, up from 5.24%.
Official title: Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on October 07, 2026 · Press Release 2026-2027/1267
What happened
RBI held the 1-day VRRR auction on 7 October 2026. It had offered to borrow ₹3,00,000 crore. Banks offered ₹2,55,827 crore, RBI accepted ₹2,55,827 crore, and the cut-off rate and weighted average rate were both 5.49%.
The cut-off rate rose by 25 basis points (0.25 percentage point) from the 5.24% of all the earlier auctions. RBI's money market report for the same day (see the 7 October Money Market Operations explainer) shows its deposit rate at 5.25% and emergency (MSF) rate at 5.75%, both also up by 0.25 points. This looks like a change in RBI's policy rates. This release itself does not say why, so see the policy announcement for the reason. About 85% of the amount was still taken.
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.