RBI Announces ₹125,000 Cr 7-Day VRR Auction

Document title: RBI to conduct 7‑day Variable Rate Repo (VRR) auction under LAF on July 20, 2026

Issuing authority: Reserve Bank of India

Reference number: Press Release 2026‑2027/708

Date: 17 July 2026

Policy rates and liquidity

The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Repo (VRR) auction on Monday, 20 July 2026. The notified amount for the auction is ₹1,25,000 crore with a single tenor of seven days. Bidding will be open from 09:30 AM to 10:00 AM on the auction day, and the repo amount will be reversed on 27 July 2026.

Regulatory and policy measures

The operational guidelines for this VRR auction will be the same as those outlined in the RBI Press Release 2021‑2022/1572 dated 20 January 2022. The announcement is issued as Press Release 2026‑2027/708 by Deputy General Manager Ajit Prasad, Communications.

The RBI’s use of a 7‑day VRR auction of ₹1.25 trillion reflects its ongoing effort to fine‑tune liquidity in the banking system through the Liquidity Adjustment Facility.