RBI announces ₹2 lakh crore 3-day VRRR auction for Oct 12 to absorb liquidity

The RBI will conduct a 3-day Variable Rate Reverse Repo auction of ₹2 lakh crore on October 12, 2026, to absorb surplus liquidity. This is a routine liquidity management operation under the LAF framework, indicating the central bank's intent to manage banking system liquidity without changing the policy rate. The move suggests liquidity conditions remain comfortable, with the RBI draining excess funds.