← 4 October 2026's Current Affairs · Economy GA Prelims ★★★☆☆ Mains ★★★☆☆
RBI names Sudhakar Malli Executive Director; schedules VRRR auction
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
RBI borrows from banks to drain cash: the VRRR reverse repo mechanism GS3 monetary policy answers need
RBI appointment, a liquidity-absorbing VRRR auction and its crypto stance.
Why it matters: general awareness
What you need to know
2 ನಿಮಿಷ
The Reserve Bank of India appointed Sudhakar Malli as an Executive Director.
The RBI also announced an Overnight Variable Rate Reverse Repo auction under the Liquidity Adjustment Facility for 5 October 2026, after reviewing liquidity conditions.
A reverse repo absorbs surplus liquidity from banks.
Governor Sanjay Malhotra said India is cautious on crypto assets but backs the underlying technology.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- RBI appointed Sudhakar Malli as an Executive Director.
- An Overnight Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility is scheduled for 5 October 2026.
- In a reverse repo the RBI borrows from banks against securities, absorbing surplus liquidity.
- Repo injects liquidity; reverse repo absorbs it.
- Governor Sanjay Malhotra: India is cautious on crypto assets but supports the underlying technology.
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- The Liquidity Adjustment Facility (LAF) comprises repo and reverse repo operations through which the RBI manages short-term liquidity.
- A reverse repo operation absorbs surplus liquidity from the banking system, whereas a repo operation injects liquidity.
- Variable rate auctions fix the rate through bidding by banks rather than at a fixed administered rate.
- Changes in the Cash Reserve Ratio are a separate policy instrument and not part of LAF auctions.
ಮೇನ್ಸ್
GS3 Economy: Monetary policy. Surplus liquidity can blunt policy transmission and fuel inflation, so the RBI uses LAF tools such as VRRR to absorb it and keep short-term rates near the policy rate. The way forward is calibrated, transparent liquidity management alongside a cautious, technology-friendly regulatory stance on crypto assets.
Quick recall
Answer before you reveal
ದ್ರವ್ಯತೆ ಹೊಂದಾಣಿಕೆ ಸೌಲಭ್ಯ (LAF) ಅಡಿಯಲ್ಲಿ RBI ಓವರ್‌ನೈಟ್ ವೇರಿಯಬಲ್ ರೇಟ್ ರಿವರ್ಸ್ ರೆಪೊ (VRRR) ಹರಾಜನ್ನು ಯಾವಾಗ ನಡೆಸುತ್ತದೆ?
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಗೆ ದ್ರವ್ಯತೆ ಪೂರೈಸಲು
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಯ ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳಲು
- ಬ್ಯಾಂಕುಗಳ ನಗದು ಮೀಸಲು ಅನುಪಾತ ಹೆಚ್ಚಿಸಲು
- ಸರ್ಕಾರಿ ಸೆಕ್ಯುರಿಟಿಗಳನ್ನು ಸಾರ್ವಜನಿಕರಿಗೆ ಮಾರಲು
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: B — ರಿವರ್ಸ್ ರೆಪೊದಲ್ಲಿ RBI ಬ್ಯಾಂಕುಗಳಿಂದ ಹಣ ಪಡೆದು ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳುತ್ತದೆ.
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