RBI announces ₹1.5 lakh crore 10-day VRRR auction for Oct 9 to absorb liquidity

The Reserve Bank of India will conduct a 10-day Variable Rate Reverse Repo auction of ₹1.5 lakh crore on October 9, 2026, to absorb surplus liquidity from the banking system. This is a routine liquidity management operation under the LAF framework, indicating the RBI's assessment of durable surplus conditions. The move signals a neutral-to-tightening bias in liquidity management, with marginal impact on short-term rates.