RBI to borrow up to ₹1.5 lakh crore for 3 days, auction on 9 Oct
A second 3-day cash-absorbing auction on 9 October, for up to ₹1,50,000 crore, to be returned on Monday, 12 October.
Official title: RBI to conduct 3-day Variable Rate Reverse Repo (VRRR) auction under LAF on October 09, 2026 · Press Release 2026-2027/1292
What happened
RBI will hold a second Variable Rate Reverse Repo (VRRR) auction on Friday, 9 October 2026, between 11:00 and 11:30 AM. This one is for 3 days and up to ₹1,50,000 crore, with the money returned on Monday, 12 October. A 3-day tenor covers the weekend.
The release gives no reason beyond the usual review of "current and evolving liquidity conditions". Taking cash in over a weekend suggests RBI saw surplus cash it wanted to soak up.
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.