Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 18, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026‑2027/912
Date: August 17, 2026
Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Tuesday, August 18, 2026. The auction will make available a notified amount of ₹1,50,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM on the auction day. The reverse repo transaction will be reversed on Wednesday, August 19, 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 as Press Release 2026‑2027/912 by the Deputy General Manager, Ajit Prasad, from the Communications division of the RBI.
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 without altering the broader policy stance. This operational step provides banks with a secure avenue to park excess funds overnight at a variable rate, thereby fine‑tuning liquidity conditions in line with the central bank’s objectives.