Document title: RBI to conduct 3‑day Variable Rate Reverse Repo (VRRR) auction under LAF on August 14, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/886
Date: August 13, 2026
Policy Rates and Liquidity
The Reserve Bank of India has decided, after reviewing current and evolving liquidity conditions, to conduct a Variable Rate Reverse Repo (VRRR) auction on Friday, August 14, 2026. The auction will make available a notified amount of ₹1,50,000 crore for a tenor of three days. Bidding will be accepted between 09:30 AM and 10:00 AM on the auction day. The reverse‑repo operation will be reversed on Monday, August 17, 2026. This operation is undertaken under the Liquidity Adjustment Facility (LAF) to manage short‑term liquidity in the market.
Regulatory and Policy Measures
The operational guidelines governing the 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, reaffirming the RBI's consistent approach to liquidity management through the VRRR mechanism.
The RBI’s use of a sizable ₹1,50,000 crore VRRR auction reflects its ongoing commitment to fine‑tune liquidity conditions while maintaining established procedural standards.