Result of the 4-day Variable Rate Repo (VRR) auction held on November 09, 2026
RBI - Press Releases · Published 9 November 2026 · Last updated
The RBI’s 4‑day Variable Rate Repo auction on 9 Nov 2026 injected ₹50,000 cr at a cut‑off rate of 5.51%, with a weighted average of 5.54% and 15.18% of bids allotted at the cut‑off.
Key points
- Reserve Bank of India (RBI) conducted a 4‑day Variable Rate Repo (VRR) auction on 9 Nov 2026 under the Liquidity Adjustment Facility.
- The notified amount for the auction was ₹50,000 crore.
- Total bids received amounted to ₹62,872 crore, indicating strong demand from banks.
- The RBI allotted ₹50,003 crore, marginally exceeding the notified amount due to oversubscription.
- The cut‑off rate was set at 5.51 %, while the weighted average rate across all allotted bids was 5.54 %.
- A partial allotment mechanism was applied, with 15.18 % of bids receiving allocation at the cut‑off rate.
- The auction result was released by Ajit Prasad, Deputy General Manager (Communications) of the RBI.
- The operation reverses on 13 Nov 2026, returning the borrowed funds to the RBI as per the LAF framework.
Background
- Variable Rate Repo (VRR) auctions are a component of the RBI’s Liquidity Adjustment Facility (LAF), introduced to manage short‑term liquidity in the banking system.
- Earlier in October 2026, the RBI had also conducted VRR auctions (e.g., on 26 Oct 2026) after a period of liquidity absorption through Variable Rate Reverse Repo (VRRR) auctions.
- Since July 2026, the RBI shifted from net liquidity absorption to injection, reflecting tightening of market conditions and the need to support the money market.
- The LAF framework is governed by the RBI Act, 1934, which empowers the central bank to conduct repo and reverse‑repo operations.
UPSC relevance, Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: RBI - Press Releases