Document title: RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on July 07, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/617
Date: July 06, 2026
Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Repo (VRR) auction on Tuesday, July 07, 2026. The auction will be conducted under the Liquidity Adjustment Facility (LAF) and will involve a single‑day tenor. The notified amount for the auction is ₹50,000 crore. Bidding will be open from 09:30 AM to 10:00 AM on the auction day, and the repo transaction will be reversed on July 08, 2026 (Wednesday).
Regulatory and Policy Measures
The operational guidelines for this VRR auction will be identical to those outlined in the RBI’s earlier press release dated January 20, 2022 (Press Release 2021-2022/1572). The current announcement is issued under Press Release 2026-2027/617 and is signed by Deputy General Manager Ajit Prasad, Communications.
The RBI’s decision to inject ₹50,000 crore of liquidity through an overnight repo reflects its ongoing commitment to manage short‑term liquidity conditions in the banking system and to ensure the smooth functioning of money markets. This measure is part of the central bank’s broader toolkit for maintaining monetary stability.
Overall, the announcement signals a targeted liquidity infusion for a single day, employing the established VRR mechanism and adhering to previously set operational procedures.