Document title: RBI to conduct Second Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 16, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1122
Date: 16 September 2026
Policy rates and liquidity
The RBI has decided to conduct a second overnight Variable Rate Reverse Repo (VRRR) auction on 16 September 2026 under the Liquidity Adjustment Facility. The auction will offer a notified amount of ₹1,00,000 crore for a one‑day tenor. Bidding will be open from 11:00 AM to 11:30 AM on the auction day. The reverse repo transaction will be reversed on 17 September 2026 (Thursday).
Regulatory and policy measures
The operational guidelines governing the VRRR auction will remain the same as those outlined in the RBI press release dated 13 February 2020 (Press Release 2019‑2020/1947). The current announcement is issued as Press Release 2026‑2027/1122 by Deputy General Manager Ajit Prasad, Communications.
The RBI’s continuation of the VRRR mechanism underscores its ongoing effort to manage short‑term liquidity in the banking system, with unchanged procedural framework.