Document title: RBI to conduct 15‑day Variable Rate Reverse Repo (VRRR) auction under LAF on August 31, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026‑2027/989
Date: August 28, 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 Monday, August 31, 2026. The auction will make available a notified amount of ₹6,00,000 crore for a tenor of fifteen days. Bidding will be open between 09:30 AM and 10:00 AM, and the reverse repo operation will be reversed on September 15, 2026. This instrument is being used under the Liquidity Adjustment Facility to manage short‑term liquidity in the banking system.
Regulatory and policy measures
The operational guidelines governing the VRRR auction will remain unchanged and continue to follow the framework set out in the Reserve Bank's press release dated February 13, 2020 (Press Release 2019‑2020/1947). The current notice is issued as Press Release 2026‑2027/989 by Deputy General Manager Ajit Prasad, Communications, of the RBI.
The RBI’s announcement underscores its ongoing use of reverse repo operations to fine‑tune liquidity, employing a substantial amount of ₹600,000 crore while retaining established procedural guidelines.