Document title: RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 02, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1018
Date: September 01, 2026
Policy rates and liquidity
The RBI announced that it will conduct a Variable Rate Reverse Repo (VRRR) auction on Wednesday, September 02, 2026, under the Liquidity Adjustment Facility (LAF). The auction will offer a notified amount of ₹5,00,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM. The reversal of the repo transaction is scheduled for Thursday, September 03, 2026.
Regulatory and policy measures
The operational guidelines governing the VRRR auction will continue to follow those set out in the RBI press release dated February 13, 2020 (Press Release 2019‑2020/1947). The notice is issued by Deputy General Manager Ajit Prasad, Communications Department. No changes to the existing framework are indicated.
The RBI’s decision to deploy a large‑scale overnight VRRR auction reflects its ongoing monitoring of liquidity conditions and its commitment to using the LAF mechanism to manage short‑term market liquidity.