Document title: RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on June 22, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/504
Date: 19 June 2026
Policy Rates and Liquidity
The RBI announced that, after reviewing current and evolving liquidity conditions, it will conduct a Variable Rate Repo (VRR) auction on Monday, 22 June 2026. The operation is part of the Liquidity Adjustment Facility and is intended to manage short‑term liquidity in the market.
Banking and Credit
The auction will feature a notified amount of ₹1,25,000 crore (one hundred twenty‑five thousand crore rupees) for a tenor of one day. Bidding will be open from 9:30 AM to 10:00 AM on the auction day. The repo transaction will be reversed on Tuesday, 23 June 2026, thereby restoring the liquidity injected on the previous day.
Regulatory and Policy Measures
The operational guidelines for this VRR auction will be identical to those outlined in the RBI’s earlier press release 2021‑2022/1572 dated 20 January 2022. The current announcement is issued as Press Release 2026‑2027/504 and is signed by Deputy General Manager Ajit Prasad, Communications.
The RBI’s action reflects a proactive stance in fine‑tuning liquidity conditions through short‑term repo operations, maintaining market stability while adhering to established procedural frameworks.