RBI VRRR auction undersubscribed; ₹71,580 cr accepted at 5.49%

The RBI's 1-day variable rate reverse repo auction on October 13, 2026 received offers of ₹71,580 crore against a notified amount of ₹1,50,000 crore, indicating a liquidity deficit in the banking system. The cut-off rate of 5.49% aligns with the policy repo rate, suggesting the central bank is absorbing available surplus but demand is limited. This undersubscription signals tighter systemic liquidity, which may influence short-term rates and monetary policy expectations.