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 Monday, 31 August 2026. The auction will be conducted under the Liquidity Adjustment Facility (LAF). A total notified amount of ₹4,00,000 crore will be made available for a one‑day tenor. Bidding will be open from 11:00 AM to 11:30 AM on the auction day. The reverse repo transaction will be reversed on Tuesday, 1 September 2026.
Regulatory and Policy Measures
The operational guidelines governing the VRRR auction will remain unchanged and continue to follow the framework outlined in the Reserve Bank's press release dated 13 February 2020 (Press Release 2019-2020/1947). No modifications to the auction mechanism or eligibility criteria have been announced.
The announcement was issued by Deputy General Manager Ajit Prasad, Communications, of the RBI.
This document outlines the RBI's liquidity management action for the specified date and reaffirms the continuity of existing operational procedures.