RBI offers a longer 29-day VRRR on 8 Oct: ₹2 lakh crore
RBI will borrow up to ₹2,00,000 crore from banks for 29 days on 8 October, to 6 November, and banks may withdraw early.
Official title: RBI to conduct 29-day Variable Rate Reverse Repo (VRRR) auction under LAF · Press Release 2026-2027/1275
What happened
RBI will hold a 29-day Variable Rate Reverse Repo (VRRR) auction on Thursday, 8 October 2026. It wants to borrow up to ₹2,00,000 crore from banks. Bids can be placed between 9:30 AM and 10:00 AM, and the money goes back to the banks on Friday, 6 November. The release says only that this follows a review of current and evolving liquidity conditions.
This one is different. Every other auction in this batch lasts one to four days. A 29-day auction takes cash out of the system for about a month, so it is a more durable drain than the overnight ones.
Banks that lend in this auction may take their money back before the end date. Requests must be placed on RBI's e-Kuber portal on a working day in Mumbai, at least two working days before the original return date, and also reported by email to RBI's Financial Markets Operations Department. Early repayment is settled at the start of the next working day, and the bank gets its principal plus interest for the days it lent. Partial early reversal of a bid is allowed.
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 can lend spare cash to RBI for 29 days at the auction rate and withdraw it early if needed. 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.