← 9 November 2026's Current Affairs · Economy GS-3 Prelims ★★★☆☆ Mains ★★★★★
RBI holds 4-day Variable Rate Repo auction of ₹50,000 crore on 9 November
ಸುದ್ದಿಯಲ್ಲಿ ಏಕೆ?
₹50,000 crore for four days: does a VRR repo inject or absorb liquidity? Know the LAF contrast
RBI notified a ₹50,000 crore, 4-day VRR auction for 9 November, reversing on 13 November, to manage liquidity.
Why it matters: GS-3 core
What you need to know
2 ನಿಮಿಷ
The Reserve Bank of India notified a four-day Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility for Monday, 9 November 2026, with a notified amount of ₹50,000 crore and reversal on 13 November.
In a repo auction the RBI lends funds to banks against eligible collateral, so it injects short-term liquidity; the opposite operation, the Variable Rate Reverse Repo (VRRR), absorbs surplus liquidity.
The central bank said the auction followed a review of near-term liquidity conditions.
ಮೂಲಗಳು: Topper IAS editorial (PIB / The Hindu / Indian Express)
ಮುಖ್ಯ ಅಂಶಗಳು
Remember these
- RBI notified a 4-day Variable Rate Repo (VRR) auction of ₹50,000 crore on Monday, 9 November 2026
- Reversal (repayment) date of the operation: 13 November 2026
- VRR is part of the Liquidity Adjustment Facility (LAF): the RBI lends to banks against eligible collateral, injecting short-term liquidity
- The opposite operation, Variable Rate Reverse Repo (VRRR), absorbs surplus liquidity from the banking system
- The auction followed an RBI review of near-term liquidity conditions
ಪ್ರಿಲಿಮ್ಸ್ · ಮೇನ್ಸ್
How the exam will ask it
ಪ್ರಿಲಿಮ್ಸ್
- A repo operation under the LAF injects liquidity into the banking system, whereas a reverse repo absorbs it.
- In a Variable Rate Repo auction, the interest rate is discovered through bidding rather than being fixed by the RBI.
- Under LAF, banks borrow from the RBI against eligible government securities as collateral for a fixed tenor.
- The Variable Rate Reverse Repo (VRRR) is used by the RBI when the system has surplus liquidity.
ಮೇನ್ಸ್
GS Paper 3 (Monetary policy and Banking). Issue: tight or fluctuating system liquidity can disrupt short-term money market rates and the transmission of the policy repo rate. Provision: the RBI uses LAF tools such as fixed and variable rate repo and reverse repo auctions to fine-tune liquidity. Implication: durable liquidity needs a wider toolkit; way forward is clear communication, forecasting of liquidity and a mix of short-term and durable operations.
Quick recall
Answer before you reveal
ಭಾರತೀಯ ರಿಸರ್ವ್ ಬ್ಯಾಂಕ್ ನಡೆಸುವ ವೇರಿಯಬಲ್ ರೇಟ್ ರೆಪೋ (VRR) ಹರಾಜಿಗೆ ಸಂಬಂಧಿಸಿದಂತೆ ಈ ಹೇಳಿಕೆಗಳನ್ನು ಪರಿಗಣಿಸಿ:
- VRR ಹರಾಜಿನಲ್ಲಿ RBI ಅರ್ಹ ಅಡಮಾನ ಪಡೆದು ನಿಗದಿತ ಅವಧಿಗೆ ಬ್ಯಾಂಕುಗಳಿಗೆ ಹಣ ಸಾಲ ನೀಡುತ್ತದೆ.
- ಬ್ಯಾಂಕಿಂಗ್ ವ್ಯವಸ್ಥೆಯಿಂದ ಹೆಚ್ಚುವರಿ ದ್ರವ್ಯತೆಯನ್ನು ಹೀರಿಕೊಳ್ಳಲು VRR ಹರಾಜನ್ನು ಬಳಸಲಾಗುತ್ತದೆ. ಮೇಲಿನ ಹೇಳಿಕೆಗಳಲ್ಲಿ ಯಾವುದು ಸರಿ?
- ಕೇವಲ 1
- ಕೇವಲ 2
- 1 ಮತ್ತು 2 ಎರಡೂ
- 1 ಅಥವಾ 2 ಯಾವುದೂ ಅಲ್ಲ
ಉತ್ತರ ನೋಡಿ
ಉತ್ತರ: A — ಹೇಳಿಕೆ 1 ಸರಿ: ರೆಪೋ ಹರಾಜು ಬ್ಯಾಂಕುಗಳಿಗೆ RBI ನೀಡುವ ಅಡಮಾನ ಸಾಲವಾಗಿದ್ದು ದ್ರವ್ಯತೆ ಹೆಚ್ಚಿಸುತ್ತದೆ; ಹೇಳಿಕೆ 2 ರಿವರ್ಸ್ ರೆಪೋಗೆ ಸಂಬಂಧಿಸಿದ್ದು.
Convert this topic into marks
Today's 10-MCQ test · instant analysis · Powered by AdaptIQ