RBI announces ₹3 lakh crore overnight VRRR auction to absorb liquidity

The Reserve Bank of India will conduct a ₹3,00,000 crore overnight Variable Rate Reverse Repo auction on October 7, 2026, to absorb surplus liquidity. The large notified amount signals sustained excess banking system liquidity, likely reflecting ongoing forex intervention or fiscal spending. This is a routine liquidity management operation, but the size suggests the RBI is actively managing short-term rates to keep them near the policy corridor.