Checked 31 October 2026, the Reserve Bank of India's overnight Variable Rate Repo (VRR) auction of Rs 50,000 crore runs on Wednesday, 21 October 2026, from 09:30 to 10:00 AM, with the funds reversed on 22 October. The notice dated 19 October 2026 is a one-day liquidity operation and does not announce a change to the policy repo rate.
What the RBI announced on 19 October
The RBI ran a 7-day VRR auction on Monday, 19 October 2026, and announced the overnight auction for Wednesday in a separate release the same day. The official releases give the terms of each operation. They do not state a before and after rate, so the table lists the terms only.
| Operation | Notified amount (Rs crore) | Tenor | Window | Reversal date | Official notice |
|---|---|---|---|---|---|
| 7-day VRR auction, held 19 Oct 2026 | 1,00,000 | 7 days | 09:30 to 10:00 AM | 26 Oct 2026 | PR 2026-2027/1345 |
| Overnight VRR auction, 21 Oct 2026 | 50,000 | 1 day | 09:30 to 10:00 AM | 22 Oct 2026 | PR 2026-2027/1355 |
As of 20 October 2026. Source: RBI press releases 2026-2027/1345 and 2026-2027/1355, rbi.org.in.
The 7-day auction drew bids of Rs 1,50,735 crore against the Rs 1,00,000 crore notified, and the RBI allotted Rs 1,00,014 crore. The cut-off rate was 5.51 percent and the weighted average rate 5.52 percent. Bids at the cut-off rate were allotted in part, at 56.04 percent (RBI press release 2026-2027/1347, 19 October 2026).
- Day 019 Oct 2026: 7-day VRR auction held, Rs 1,00,000 crore notified
- Day 221 Oct 2026: overnight VRR auction, Rs 50,000 crore, 09:30 to 10:00 AM
- Day 322 Oct 2026: overnight auction funds reversed
- Day 726 Oct 2026: 7-day auction funds reversed
Try it: Home Loan EMI Calculator lets you enter a loan amount, rate and tenure to see the monthly EMI and the repayment schedule.
Who it affects
The auction runs under the Liquidity Adjustment Facility (LAF), and its terms govern the banks and other participants that bid in it. Borrowers feel the effect only through the rates on their loans. A floating rate home loan linked to the repo rate resets when the repo rate itself changes, and the reset date is set out in the loan agreement. This notice does not change the repo rate.
What it means for a Rs 30 lakh home loan
For a labelled example, take a Rs 30,00,000 loan over 20 years at an assumed 8.5 percent a year. The EMI is Rs 26,034.70 a month. At an assumed 8.75 percent, which is 0.25 percentage points higher, the EMI is Rs 26,511.32. These are example rates, not a bank's rate and not a forecast. The EMI Calculator runs the same formula for any loan, and the table shows each step.
Worked example with assumed rates, not a bank rate and not a forecast. Calculated with the EMI formula; figures rounded to paise.
| Step | Working | Value |
|---|---|---|
| Loan amount (example) | assumed | Rs 30,00,000 |
| Tenure | 20 years x 12 months | 240 months |
| Monthly rate at 8.50 percent (example) | 8.5 / 12 / 100 | 0.00708333 |
| EMI at 8.50 percent | P r (1+r)^n / ((1+r)^n - 1) | Rs 26,034.70 |
| EMI at 8.75 percent (example, 0.25 point higher) | same formula with r = 8.75 / 12 / 100 | Rs 26,511.32 |
| Difference per month | 26,511.32 - 26,034.70 | Rs 476.62 |
Example figures, not today's rates.
What to do
- Open the press releases page on rbi.org.in and check the date, amount and reversal date of each notice you read about.
- Read your home loan agreement for the rate type (fixed, floating or repo-linked) and the date the rate last reset.
- Treat a VRR notice as a liquidity operation, and wait for a policy decision on the repo rate before you expect a change in a repo-linked EMI.
- Test your own loan amount, rate and tenure in the home loan EMI calculator above, using the rate from your agreement.
What has not changed
This notice does not change the policy repo rate, and this page does not state its current level. The rate is set at Monetary Policy Committee meetings, so read the latest policy statement on rbi.org.in for the repo rate in force. A one-day VRR auction does not change the EMI on an existing loan by itself. For another RBI change this month that affects a different group of institutions, read the RBI forex hedge threshold post.
Common mistakes
- Reading the auction cut-off rate as the repo rate. The cut-off is the rate at which the RBI accepted bids in one auction, and it is a different figure.
- Treating a one-day VRR notice as a rate change for your loan.
- Quoting an auction amount from a news report instead of the RBI release, which carries the official amount, window and reversal date.
