← 15 October 2026's Current Affairs · Economy GA Prelims ★★★☆☆ Mains ★★★☆☆
RBI to hold Overnight Variable Rate Reverse Repo auction on 15 October
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
The RBI borrows from banks, not the other way round: the VRRR logic GS-III Prelims tests
The Reserve Bank of India will conduct an overnight Variable Rate Reverse Repo auction under its Liquidity Adjustment Facility on 15 October 2026 after reviewing liquidity conditions. In a reverse repo the RBI borrows money from banks, so a VRRR auction absorbs surplus liquidity at a rate discovered through bidding.
Why it matters: general awareness
What you need to know
2 ನಿಮಿಷ
The Reserve Bank of India will conduct an overnight Variable Rate Reverse Repo auction under its Liquidity Adjustment Facility on 15 October 2026 after reviewing liquidity conditions.
In a reverse repo the RBI borrows money from banks, so a VRRR auction absorbs surplus liquidity at a rate discovered through bidding.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- VRRR = Variable Rate Reverse Repo, an overnight auction under the RBI's Liquidity Adjustment Facility (LAF)
- In a reverse repo the RBI borrows money from banks, absorbing surplus liquidity
- In VRRR the rate is discovered through bidding, unlike the fixed-rate reverse repo
- Repo is the rate at which the RBI lends to banks; reverse repo is the rate at which it borrows
- The auction is scheduled for 15 October 2026 after a review of liquidity conditions
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- In a reverse repo operation, the RBI borrows funds from commercial banks against government securities.
- A Variable Rate Reverse Repo auction is used to absorb surplus liquidity from the banking system.
- The VRRR rate is determined through competitive bidding rather than being fixed by the RBI.
- The Liquidity Adjustment Facility (LAF) includes repo and reverse repo operations.
ಮೇನ್ಸ್
GS-III (Economy): Surplus banking liquidity can weaken the transmission of policy rates and fuel inflation. The RBI uses LAF tools such as VRRR auctions to absorb excess funds and keep short-term rates near the policy rate. Effective liquidity management, with clear communication, helps balance growth and price stability.
Quick recall
Answer before you reveal
ಆರ್‌ಬಿಐ ನಡೆಸುವ ವೇರಿಯಬಲ್ ರೇಟ್ ರಿವರ್ಸ್ ರೆಪೊ (VRRR) ಹರಾಜಿಗೆ ಸಂಬಂಧಿಸಿದಂತೆ ಈ ಕೆಳಗಿನ ಹೇಳಿಕೆಗಳನ್ನು ಪರಿಗಣಿಸಿ:
- ರಿವರ್ಸ್ ರೆಪೊ ವ್ಯವಹಾರದಲ್ಲಿ ಆರ್‌ಬಿಐ ಬ್ಯಾಂಕುಗಳಿಂದ ಹಣವನ್ನು ಸಾಲವಾಗಿ ಪಡೆಯುತ್ತದೆ.
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಯಲ್ಲಿನ ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳಲು VRRR ಹರಾಜುಗಳನ್ನು ಬಳಸಲಾಗುತ್ತದೆ. ಮೇಲಿನ ಹೇಳಿಕೆಗಳಲ್ಲಿ ಯಾವುದು/ಯಾವವು ಸರಿ?
- 1 ಮಾತ್ರ
- 2 ಮಾತ್ರ
- 1 ಮತ್ತು 2 ಎರಡೂ
- 1 ಅಥವಾ 2 ಯಾವುದೂ ಅಲ್ಲ
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: C — 1 ಮತ್ತು 2 ಎರಡೂ ಸರಿಯಾದ ಉತ್ತರ. ಎರಡೂ ಹೇಳಿಕೆಗಳು ಸರಿ. ರಿವರ್ಸ್ ರೆಪೊದಲ್ಲಿ ಆರ್‌ಬಿಐ ಸರ್ಕಾರಿ ಭದ್ರತೆಗಳ ಮೇಲೆ ಬ್ಯಾಂಕುಗಳಿಂದ ಸಾಲ ಪಡೆಯುತ್ತದೆ; VRRR ಹರಾಜುಗಳು ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳಲು ಬಳಕೆಯಾಗುತ್ತವೆ.
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