Document title: RBI to conduct 3‑day Variable Rate Reverse Repo (VRRR) auction under LAF on September 04, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1032
Date: September 03, 2026
Policy Rates and Liquidity
The RBI, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Friday, September 04, 2026. The auction will be conducted under the Liquidity Adjustment Facility (LAF) and will involve a notified amount of ₹7,00,000 crore. The tenor of the operation is three days. Bidding will be open from 09:30 AM to 10:00 AM on the auction day. The reverse repo transaction will be reversed on Monday, September 07, 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will remain unchanged and continue to follow those outlined in the RBI Press Release dated February 13, 2020 (Press Release 2019‑2020/1947). No new procedural modifications have been introduced. The announcement was issued by Deputy General Manager Ajit Prasad, Communications, of the RBI.
The RBI’s use of the VRRR tool reflects its ongoing effort to fine‑tune liquidity in the banking system, employing a substantial amount while maintaining consistency with established operational frameworks.