RBI to hold an overnight variable rate repo (VRR) auction on 21 October
The RBI says it will run a one-day VRR auction for banks on 21 October 2026, a routine way of managing how much cash banks have.
What this means for you
This has no direct effect on ordinary customers. It is routine RBI work to keep enough money in the banking system. Your EMI or deposit interest does not change because of it.
Key facts
- Auction date: 21 October 2026
- Tenor: overnight (one day)
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Questions and answers
What is a VRR auction?
The RBI lends to banks for a short period, with the interest rate set by auction.
Has the repo rate changed?
No. The repo rate is set by the Monetary Policy Committee; this auction is separate.
Glossary
- VRR auction
- Variable Rate Repo: an RBI auction in which banks borrow money from the RBI for a fixed period.
Source: RBI, "RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on October 21, 2026", 19 October 2026. Read the original notice
Checked against the official notice: 19 October 2026. This story was drafted with AI from an official notice and checked by an editor before publishing. Report an error