Document title: RBI to conduct 7‑day Variable Rate Reverse Repo (VRRR) auction under LAF on September 01, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026‑2027/1007
Date: August 31, 2026
Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Tuesday, 1 September 2026. The auction will offer a notified amount of ₹6,00,000 crore with a tenor of seven days. Bidding will be open for a 30‑minute window from 09:30 AM to 10:00 AM. The reverse repo operation will be reversed on Tuesday, 8 September 2026.
Regulatory and Policy Measures
The operational guidelines for this VRRR auction will remain unchanged and continue to follow the framework outlined in the RBI press release dated 13 February 2020 (Press Release 2019‑2020/1947). The announcement is issued under Press Release 2026‑2027/1007 by Deputy General Manager Ajit Prasad, Communications.
The RBI’s decision reflects its ongoing management of liquidity in the banking system through the Liquidity Adjustment Facility, providing a short‑term instrument for banks to park excess funds at a variable rate.