Document title: RBI to conduct Second Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 18, 2026
Issuing authority: Reserve Bank of India
Reference: Press Release 2026-2027/915
Date: 18 August 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 Tuesday, 18 August 2026. The auction will offer a notified amount of ₹75,000 crore for a one‑day tenor. Bidding will be open from 12:00 noon to 12:30 pm, and the reverse repo transaction will be reversed on 19 August 2026.
Regulatory and Policy Measures
The operational guidelines for this auction will remain unchanged and will follow those outlined in the RBI Press Release dated 13 February 2020 (Press Release 2019‑2020/1947). The auction is conducted under the Liquidity Adjustment Facility (LAF). The communication is issued by Deputy General Manager Ajit Prasad, Communications.
The RBI’s use of the VRRR mechanism reflects its ongoing effort to fine‑tune short‑term liquidity in the banking system while maintaining consistency with established operational frameworks.