29-day VRRR on 8 Oct: banks lend ₹79,655 crore at 5.49%
Banks offered ₹79,655 crore for 29 days against ₹2,00,000 crore sought. All was accepted at 5.49%.
Official title: Result of the 29-day Variable Rate Reverse Repo (VRRR) auction held on October 08, 2026 · Press Release 2026-2027/1277
What happened
RBI held the 29-day VRRR auction on 8 October 2026. It had offered to borrow ₹2,00,000 crore. Banks offered ₹79,655 crore, RBI accepted ₹79,655 crore, and the cut-off rate and weighted average rate were both 5.49%.
Only about 40% of the amount was taken. Locking cash away for a month at 5.49% drew less interest from banks than overnight rounds did, but it still took a sizeable amount of cash out of the system until 6 November. The early-withdrawal option announced with this auction is a feature banks can use if they need the money back.
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.