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Reserve Bank of India Press ReleasesIndia23 October 2026

RBI schedules 4-day Variable Rate Repo auction of 1,50,000 crore rupees for October 26, 2026

The Reserve Bank of India announced on October 23, 2026, that it will hold a 4-day Variable Rate Repo auction on October 26, 2026. The central bank plans to inject up to 1,50,000 crore rupees into the banking system through this operation under the Liquidity Adjustment Facility. The auction window will open at 9:30 AM and close at 10:00 AM on Monday, October 26, 2026. The reversal date for the transaction is set for Friday, October 30, 2026. The Reserve Bank of India stated that it decided to conduct this auction after reviewing current and evolving liquidity conditions in the near term. Variable Rate Repo auctions allow commercial banks to borrow cash from the central bank for a short period against government securities. This helps maintain sufficient cash flow in the financial system. Operational rules for the auction match those outlined in an earlier Reserve Bank release from January 20, 2022.

What was announced

The Reserve Bank of India plans to conduct a Variable Rate Repo auction under its Liquidity Adjustment Facility on Monday, October 26, 2026. The notified total amount for the auction is 1,50,000 crore rupees. Commercial banks can submit their bids during a 30-minute window running from 9:30 AM to 10:00 AM on that morning.

The operation has a tenor of four days. This means the transaction reverses on Friday, October 30, 2026. Operational guidelines follow the same instructions published in the Reserve Bank's press release dated January 20, 2022.

What it means

A repo, or repurchase agreement, is a tool the central bank uses to lend short-term money to commercial banks. In a Variable Rate Repo auction, banks bid for available funds by proposing interest rates. The central bank provides liquidity to banks, which temporarily pledge government securities in return.

By offering 1,50,000 crore rupees for four days, the Reserve Bank of India is adding cash into the banking system to manage near-term liquidity needs. The central bank noted that it decided on this move after reviewing liquidity conditions. Sufficient liquidity helps banks manage daily transaction demands and short-term borrowing costs.

What the announcement does not tell us

The announcement does not explain the exact factors driving current liquidity conditions. It does not state how much cash banks currently hold or whether recent market events caused a cash shortage.

The document does not disclose the minimum bid rate or cut-off yields for the auction. It also does not say if the Reserve Bank will conduct additional repo auctions later in the week if demand exceeds the notified amount.

How this was written

This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is Reserve Bank of India Press Releases’s own. Always check the original before acting on anything here.

On a review of current and evolving liquidity conditions in the near term, it has been decided to conduct a Variable Rate Repo (VRR) auction on Monday, October 26, 2026, as under: Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal 1 1,50,000 4 9:30 AM to 10:00 AM October 30, 2026 (Friday) 2. The operational guidelines for the auction will be same as given in Reserve Bank’s Press Release 2021-2022/1572 dated January 20, 2022 . Ajit Prasad Deputy General Manager (Communications) Press Release: 2026-2027/1383
Source: Reserve Bank of India Press Releases
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