Policy Rates and Liquidity
The Reserve Bank of India, after reviewing current and evolving liquidity conditions, has scheduled a Variable Rate Reverse Repo (VRRR) auction for Monday, 7 September 2026. The auction will offer a notified amount of ₹7,00,000 crore for a tenor of 30 days. Bidding will be accepted during a narrow window from 9:30 am to 10:00 am. The reversal of the lent amount is slated for Wednesday, 7 October 2026.
Regulatory and Policy Measures
Operational guidelines for this VRRR auction will be identical to those outlined in RBI Press Release 2019‑2020/1947 dated 13 February 2020. Participants are permitted to request premature reversal of the amount lent. Such requests must be submitted through the E‑Kuber portal between 09:00 and 17:00 hours on working days in Mumbai, and must also be communicated via email to laffmd@rbi.org.in. Partial reversal of a bid is allowed. The settlement of a premature reversal will occur at the start of the next working day after the request is placed. On the reversal date, the participant’s current account with the RBI will be credited with the principal and accrued interest, while the securities offered as collateral by the RBI will be debited from the participant’s reverse repo constituent SGL account. Requests for premature reversal must be placed at least two working days prior to the originally scheduled reversal date.
The RBI reiterates that all other operational aspects, including bid acceptance, allocation, and settlement procedures, will follow the framework set out in the referenced 2020 press release.
This announcement reflects the RBI’s ongoing effort to manage liquidity in the banking system through market‑based instruments.