Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 27, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/967
Date: August 25, 2026
Policy Rates and Liquidity
The RBI, after reviewing current and evolving liquidity conditions, has scheduled a Variable Rate Reverse Repo (VRRR) auction for Thursday, August 27, 2026. The operation will make available a notified amount of ₹2,00,000 crore for a one‑day tenor. Bidding will be conducted within a narrow window from 9:30 AM to 10:00 AM. The reverse repo transaction will be reversed on the following business day, Friday, August 28, 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will remain unchanged and will continue to follow the framework outlined in the RBI Press Release dated February 13, 2020 (Press Release 2019-2020/1947). The announcement is issued by Deputy General Manager Ajit Prasad, Communications, under the RBI’s standard press release protocol.
The RBI’s decision reflects its ongoing commitment to fine‑tune liquidity in the banking system through the Liquidity Adjustment Facility, ensuring adequate short‑term funding availability while maintaining monetary stability.