Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 01, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1010
Date: 1 September 2026
Policy rates and liquidity
The RBI, after reviewing current and evolving liquidity conditions, has decided to conduct a second Variable Rate Reverse Repo (VRRR) auction on Tuesday, 1 September 2026. The auction will make available a notified amount of ₹4,00,000 crore for a one‑day tenor. Bidding will be open from 11:00 AM to 11:30 AM, and the reverse repo operation will be reversed on 2 September 2026 (Wednesday).
Banking and credit
The VRRR auction, conducted under the Liquidity Adjustment Facility, provides banks with an overnight avenue to park excess funds, thereby influencing short‑term liquidity conditions in the banking system.
Regulatory and policy measures
The operational guidelines for this auction will remain unchanged and continue to follow the framework outlined in the RBI’s press release dated 13 February 2020 (Press Release 2019-2020/1947). The announcement is issued by Deputy General Manager Ajit Prasad, Communications.
In conclusion, the RBI’s decision to execute a large‑scale ₹4,00,000 crore overnight VRRR auction reflects its ongoing effort to manage liquidity through the LAF, using established guidelines to ensure market stability.