Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 10, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release: 2026-2027/847
Date: August 10, 2026
Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a second Variable Rate Reverse Repo (VRRR) auction on Monday, August 10, 2026. The operation is part of the Liquidity Adjustment Facility (LAF) and aims to manage overnight liquidity in the banking system. The notified amount for the auction is ₹1,00,000 crore, with a tenor of one day. Bidding will be open from 12:00 noon to 12:30 PM on the auction day. The reverse repo transaction will be reversed on Tuesday, August 11, 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will remain unchanged and continue to follow the framework outlined in the Reserve Bank's press release dated February 13, 2020 (Press Release 2019-2020/1947). The announcement is issued by Deputy General Manager Ajit Prasad, Communications, of the RBI.
The RBI’s decision reflects its ongoing commitment to fine‑tune liquidity conditions through market‑based instruments while maintaining consistency with established procedural norms.