iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
The Reserve Bank of India’s longer-tenure variable rate reverse repo (VRRR) auctions drew substantially fewer bids than shorter operations on 8 and 9 October 2026. The comparisons show banks were more willing to place funds for shorter periods in those particular auctions, even as system liquidity was reported to be in surplus. They do not establish why individual banks chose a tenor or prove a lasting preference.
What the October auctions showed
VRRR auctions let participants bid to place funds with the RBI at variable rates. The RBI uses these operations to absorb surplus liquidity. “Tenor” means how long the operation runs: the October comparisons were 10 days versus three days, and 29 days versus overnight.
The clearest comparison is between auctions held on the same day with the same notified amount. On 9 October, the 10-day operation received far fewer bids than the three-day operation. On 8 October, the 29-day operation also drew fewer bids than the overnight auction, although both had the same notified amount.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallOutdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware match| Date and tenor | Notified amount | Bids received | Accepted amount and rate |
|---|---|---|---|
| 9 October 2026, 10 days | ₹1.50 lakh crore | ₹18,170 crore | All bids accepted; 5.49% cut-off and weighted-average rate |
| 9 October 2026, 3 days | ₹1.50 lakh crore | ₹1,39,847 crore | Not stated in the cited report |
| 8 October 2026, 29 days | ₹2 lakh crore | ₹79,655 crore | Accepted at 5.49%, according to PTI reporting |
| 8 October 2026, overnight | ₹2 lakh crore | ₹1,60,664 crore | Accepted at 5.49%, according to PTI reporting |
The 9 October figures were reported by Press Trust of India (PTI) through Moneycontrol. The 8 October figures and rates were reported by PTI through ETBFSI. The reported rates do not, by themselves, explain why bids differed by tenor.
#1 Best Overall
- PERFECT FOR RECORD KEEPING: The 2 Pack account ledger books are versatile and can be used to track finances, budgets, expenses, and other business or personal records. They are perfect for individuals, or small business owners who need a reliable and efficient way to keep track of their finances. With 100 pages, customers can record transactions over an extended period, making it a handy tool for bill planner, weekly budget planner, monthly budget planner.
- COMPACT AND LIGHTWEIGHT: The Budget Planner is compact and lightweight with each book weighing 7 ounces and measuring 8.5 x 6.25 inch, making them easy to carry around. You can take the budget notebook in a bag or briefcase, making them ideal for on-the-go use. This feature ensures that you can access your records at any time, whether you are at work or on the move.
- PREMIUM QUALITY: Elegant style with the words ''Account Tracker'' embossed in fancy Gold Foils. Water-proof and scratch resistant hard cover. Coil ring binding is a practical design feature that enhances the functionality of the account ledger books. It allows pages to turn smoothly and easily, making it effortless to flip through the book while keeping pages in place. The ring binding also ensures that pages won't fall out, preventing the loss of vital information.
- DURABLE WATER-PROOF COVER WITH GOLD FOIL LETTERS: The words ''Account Tracker'' embossed in shiny Gold Foil letters gives it a professional and fancy look that can fit in any setting. Additionally, the durable cover is scratch resistant, It provides a durable layer of protection that can withstand daily wear and tear, making it suitable for long-term use.
Why a liquidity surplus can coexist with weaker longer-tenor bids
The 9 October report put surplus system liquidity at about ₹3.88 lakh crore as of 8 October. That is a system-wide estimate, not a statement about the cash available to every bank. Banks can have different funding positions and needs, and the reporting does not provide bank-level bids or explain individual decisions.
PTI attributed the surplus partly to mobilisation of FCNR(B) deposits and subsequent RBI swaps that supplied rupee liquidity, and partly to month-end government spending, including salaries and pensions. The report did not quantify how much each factor contributed. The RBI’s stated purpose for the VRRR operations was to absorb excess liquidity and align overnight money-market rates with the repo rate.
A shorter operation commits funds for less time than a longer one. The observed bids are consistent with participants being more willing to place funds for those shorter periods in the cited auctions. But the available reports do not establish whether banks acted on liquidity forecasts, expectations about rates, operational constraints, or another consideration. Treating any one of those as the proven cause would go beyond the evidence.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteWhat the wider reported figures add—and what they do not
PTI’s 8 October report said average daily net absorption under the Liquidity Adjustment Facility rose from ₹1.2 lakh crore in July 2026 to ₹5.8 lakh crore in August and ₹7.8 lakh crore in September. It also reported that the RBI had conducted 55 VRRR auctions, including two term VRRR auctions, since the August policy. These are figures attributed to PTI reporting, not independently verified here against the underlying RBI series. They give context for the broader liquidity operations but do not identify why bids differed between the October tenors.
Rank #3
PTI also reported that RBI Governor Sanjay Malhotra said on 6 October that the liquidity surplus would be absorbed during the financial year through currency leakage, RBI liquidity operations and banks’ reserve requirements. This is reported speech, not a direct quotation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read the “shorter maturities” conclusion
- What the numbers support: bids were materially higher for the three-day operation than the 10-day operation on 9 October, and for the overnight operation than the 29-day operation on 8 October.
- What they do not prove: the motive of any individual bank, a general or permanent preference for short tenors, or a specific forecast about future liquidity or interest rates.
- Why the distinction matters: aggregate system liquidity and auction bids describe different things. A surplus in the system does not mean every institution will offer the same amount, or commit it for the same duration.
The figures above describe the October 2026 events reported by PTI in Moneycontrol and ETBFSI. The RBI search result available for reference concerned a September 30-day auction, not these October operations, so it does not independently confirm the reported October figures.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →
