Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 06, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1255
Date: October 05, 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, 6 October 2026. The auction will be conducted under the Liquidity Adjustment Facility (LAF). A notified amount of ₹2,50,000 crore will be offered for a one‑day tenor. The operational window is scheduled from 09:30 AM to 10:00 AM. The reverse repo transaction will be reversed on Wednesday, 7 October 2026.
Regulatory and policy measures
The operational guidelines for this VRRR auction will continue to follow those outlined in the RBI Press Release dated 13 February 2020 (Release 2019‑2020/1947). No changes to the procedural framework are announced. The announcement is issued as Press Release 2026‑2027/1255 by Deputy General Manager Ajit Prasad, Communications.
The RBI’s decision to inject ₹2.5 lakh crore of liquidity through an overnight VRRR auction underscores its ongoing monitoring of market liquidity and its reliance on the LAF mechanism to manage short‑term funding conditions.