← 26 October 2026's Current Affairs · Economy GA Prelims ★★★★☆ Mains ★★★☆☆
RBI conducts 4-day Variable Rate Repo auction
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
RBI lends Rs 1.5 lakh crore for just four days: repo versus reverse repo, explained for GS3
RBI injects liquidity through a Rs 1.5 lakh crore four-day VRR auction.
Why it matters: factual, Prelims-type
What you need to know
2 ನಿಮಿಷ
The Reserve Bank of India announced a four-day Variable Rate Repo auction under the Liquidity Adjustment Facility on 26 October 2026, with a notified amount of Rs 1,50,000 crore.
The funds are to be reversed on 30 October.
The step was taken after reviewing current and evolving liquidity conditions.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- RBI announced a four-day Variable Rate Repo (VRR) auction on 26 October 2026 under the Liquidity Adjustment Facility (LAF)
- Notified amount: Rs 1,50,000 crore, to be reversed on 30 October
- A repo auction lends funds to banks against government securities, injecting liquidity
- A reverse repo (or variable rate reverse repo) does the opposite: it absorbs surplus liquidity
- LAF is the RBI's main tool for day-to-day liquidity management; the repo rate is the policy rate
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- Under the Liquidity Adjustment Facility, a repo operation injects liquidity into the banking system while a reverse repo operation absorbs it.
- In a Variable Rate Repo auction, the interest rate is determined through bidding by banks, unlike a fixed rate repo.
- Changes in the CRR and SLR are announced separately and are not carried out through repo auctions.
ಮೇನ್ಸ್
GS3 (Economy): Liquidity management is central to monetary policy transmission. The RBI uses LAF instruments such as VRR auctions to keep short-term rates close to the policy repo rate and meet banks' temporary funding needs. Way forward: clear communication, calibrated use of fine-tuning operations and a mix of durable and short-term tools to avoid volatility in money markets.
Quick recall
Answer before you reveal
ಲಿಕ್ವಿಡಿಟಿ ಅಡ್ಜಸ್ಟ್‌ಮೆಂಟ್ ಫೆಸಿಲಿಟಿ ಅಡಿ ಆರ್‌ಬಿಐ ನಡೆಸುವ ವೇರಿಯಬಲ್ ರೇಟ್ ರೆಪೊ ಹರಾಜಿನ ಉದ್ದೇಶ ಏನು?
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಯ ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳುವುದು
- ಬ್ಯಾಂಕುಗಳ ನಗದು ಮೀಸಲು ಅನುಪಾತ ಹೆಚ್ಚಿಸುವುದು
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಗೆ ಅಲ್ಪಾವಧಿ ದ್ರವ್ಯತೆ ಒದಗಿಸುವುದು
- ಕಾನೂನುಬದ್ಧ ದ್ರವ್ಯತಾ ಅನುಪಾತ ಬದಲಿಸುವುದು
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: C — ಸರಿಯಾದ ಉತ್ತರ: ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಗೆ ಅಲ್ಪಾವಧಿ ದ್ರವ್ಯತೆ ಒದಗಿಸುವುದು — ರೆಪೊ ಹರಾಜು ಬ್ಯಾಂಕುಗಳಿಗೆ ಅಲ್ಪಾವಧಿ ದ್ರವ್ಯತೆ ನೀಡುತ್ತದೆ.
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