Document title: RBI to conduct 3‑day Variable Rate Reverse Repo (VRRR) auction under LAF on August 28, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026‑2027/977
Date: 27 August 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 Friday, 28 August 2026. The auction will make available a notified amount of ₹300,000 crore for a tenor of three days. The operational window for the auction is set from 09:30 AM to 10:00 AM on the auction day. The funds absorbed in the reverse repo operation will be reversed on Monday, 31 August 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will continue to follow those outlined in the Reserve Bank's Press Release 2019‑2020/1947 dated 13 February 2020. No changes to the procedural framework are announced. The communication is issued as Press Release 2026‑2027/977 by Deputy General Manager Ajit Prasad, Communications.
The RBI’s announcement underscores its ongoing focus on fine‑tuning liquidity in the system through targeted reverse repo operations, employing the established variable‑rate mechanism to manage short‑term money market conditions.