RBI to borrow up to ₹1.5 lakh crore from banks for 10 days, 9 Oct
RBI announced a 10-day cash-absorbing auction on 9 October for up to ₹1,50,000 crore, to be returned on 19 October.
Official title: RBI to conduct 10-day Variable Rate Reverse Repo (VRRR) auction under LAF on October 09, 2026 · Press Release 2026-2027/1288
What happened
RBI will hold a 10-day Variable Rate Reverse Repo (VRRR) auction on Friday, 9 October 2026, between 9:30 and 10:00 AM. It wants to take up to ₹1,50,000 crore from banks, to be returned on Monday, 19 October.
RBI says it took the decision after reviewing "current and evolving liquidity conditions". A longer tenor than the usual overnight auction means RBI is soaking up surplus cash for more than a week.
What it means for you
No direct effect on your savings, loans or EMIs. It is a day-to-day cash management step between RBI and banks.
What it means for businesses
Banks that hold surplus cash can earn interest by lending it to RBI for this period. For other businesses the effect is indirect, through short-term interest rates in the money market.
Links in this release, explained
- RBI press release 2019-2020/1947 (13 February 2020): operating guidelines for VRRR auctions
The earlier RBI notice that sets the working rules for these auctions, such as who can bid and how bids are settled. The release says those rules are unchanged. Useful only if you want the technical detail.
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.