Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 17, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1127
Date: September 16, 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 Thursday, September 17, 2026. The auction will offer a notified amount of ₹3,00,000 crore for a tenor of one day. Bidding will be open from 09:30 AM to 10:00 AM on the auction day. The reverse repo operation will be reversed on Friday, September 18, 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 Reserve Bank's press release dated February 13, 2020 (Release 2019-2020/1947). The release is signed by Deputy General Manager Ajit Prasad, Communications.
The RBI’s use of the VRRR mechanism under the Liquidity Adjustment Facility reflects its ongoing effort to fine‑tune short‑term liquidity in the banking system while maintaining consistency with established operational procedures.