Document title: RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on October 21, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1355
Date: Not specified
Policy rates and liquidity
The Reserve Bank of India has announced that it will conduct an Overnight Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility on Wednesday, 21 October 2026. The auction will make available a notified amount of ₹50,000 crore for a tenor of one day. Bidding will be open from 09:30 AM to 10:00 AM on the auction day, and the repo transaction will be reversed on Thursday, 22 October 2026.
Regulatory and policy measures
The operational guidelines for this VRR auction will be identical to those outlined in the RBI’s earlier press release 2021‑2022/1572 dated 20 January 2022. The current announcement is issued as Press Release 2026‑2027/1355 and is signed by Deputy General Manager (Communications) Ajit Prasad.
The RBI’s decision reflects its ongoing monitoring of near‑term liquidity conditions and its commitment to providing market participants with a variable‑rate repo facility to manage short‑term funding needs. This operation adds to the RBI’s suite of liquidity tools aimed at stabilising market conditions.
Overall, the announcement details the timing, size, and procedural framework of the overnight VRR auction, underscoring the central bank’s proactive stance on liquidity management.