Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 07, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/1262
Date: October 06, 2026
Policy rates and liquidity
The RBI, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Wednesday, 7 October 2026. The auction will make available a notified amount of ₹300,000 crore for a one‑day tenor. Bidding will be open from 12:00 noon to 12:30 PM on the auction day. The reverse repo transaction will be reversed on Thursday, 8 October 2026.
Regulatory and policy measures
The operational guidelines governing this VRRR auction will remain unchanged and continue to follow those outlined in the RBI Press Release dated 13 February 2020 (Press Release 2019-2020/1947). The announcement is issued by Deputy General Manager Ajit Prasad, Communications, of the RBI.
The RBI’s decision reflects its ongoing management of liquidity in the banking system through the Liquidity Adjustment Facility, ensuring adequate short‑term funding availability while maintaining monetary stability. This operation is part of the RBI’s routine liquidity management toolkit and does not indicate any change to policy rates.
Overall, the RBI is employing its standard reverse repo mechanism to absorb excess liquidity, with the same procedural framework as previously established.