Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 29, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference: Press Release 2026-2027/1204
Date: 28 September 2026
Policy Rates and Liquidity
The RBI has decided, after reviewing current and evolving liquidity conditions, to conduct a Variable Rate Reverse Repo (VRRR) auction on Tuesday, 29 September 2026. The auction will offer a notified amount of ₹200,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM, and the reverse repo transaction will be reversed on 30 September 2026 (Wednesday).
Regulatory and Policy Measures
The operational guidelines for this auction will remain unchanged and will follow those set out in the RBI press release dated 13 February 2020 (Press Release 2019‑2020/1947). The announcement is issued under Press Release 2026‑2027/1204 and is signed by Deputy General Manager Ajit Prasad, Communications.
The RBI’s use of the VRRR mechanism under the Liquidity Adjustment Facility reflects its ongoing effort to manage short‑term liquidity in the banking system.