Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 16, 2026
Issuing authority: Reserve Bank of India (RBI), Department of Communication
Reference number: Press Release 2026-2027/1119
Date: September 15, 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 Wednesday, September 16, 2026. The auction will make available a notified amount of ₹2,50,000 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 Thursday, September 17, 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 auction is conducted under the Liquidity Adjustment Facility (LAF) as part of the RBI's ongoing liquidity management toolkit.
The RBI’s announcement reflects its continued use of the VRRR instrument to fine‑tune overnight liquidity conditions, deploying a substantial amount of ₹250,000 crore while adhering to established procedural guidelines.