Document title: RBI to conduct Second Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on October 05, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/1244
Date: October 05, 2026
Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a second Variable Rate Reverse Repo (VRRR) auction on Monday, 5 October 2026. The auction will make available a notified amount of ₹50,000 crore for a one‑day tenor. Bidding will be open from 11:30 AM to 12:00 Noon on the same day, and the reverse repo operation will be reversed on Tuesday, 6 October 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will remain unchanged and continue to follow those set out in the Reserve Bank's Press Release 2019‑2020/1947 dated 13 February 2020. No amendments to the procedural framework have been announced.
The RBI’s decision reflects its ongoing monitoring of liquidity dynamics and its use of the Liquidity Adjustment Facility to manage short‑term money market conditions. By offering a substantial ₹50,000 crore reverse repo facility, the central bank aims to absorb excess liquidity for a single day while keeping the operational framework consistent with prior practice.