Document title: RBI to conduct Second Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on August 20, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/929
Date: August 20, 2026
Policy Rates and Liquidity
The Reserve Bank of India has decided, after reviewing current and evolving liquidity conditions, to conduct a second Variable Rate Reverse Repo (VRRR) auction on Thursday, August 20, 2026. The auction will make available a notified amount of ₹50,000 crore for a tenor of one day. Bidding will be open from 11:00 AM to 11:30 AM on the auction day. The reverse repo transaction will be reversed on the following business day, Friday, August 21, 2026.
Regulatory and Policy Measures
The operational guidelines governing this VRRR auction will remain unchanged and continue to follow the framework outlined in the Reserve Bank's press release dated February 13, 2020 (Press Release 2019-2020/1947). The announcement is signed by Deputy General Manager Ajit Prasad, Communications, confirming that the procedural aspects of the auction are consistent with the previously issued guidelines.
The RBI’s continuation of VRRR operations under the Liquidity Adjustment Facility reflects its ongoing commitment to manage short‑term liquidity in the banking system and to provide a stable policy rate environment.