Document title: RBI to conduct Overnight Variable Rate Repo (VRR) auction under LAF on July 08, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/625
Date: 07 July 2026
Policy Rates and Liquidity
The RBI, after reviewing current and evolving liquidity conditions, has decided to conduct a Variable Rate Repo (VRR) auction on 8 July 2026. The auction will offer a notified amount of ₹25,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM on the auction day, and the repo will be reversed on 9 July 2026. Operational guidelines will be the same as those issued in the RBI press release dated 20 January 2022 (Press Release 2021‑2022/1572).
Banking and Credit
The VRR auction is conducted under the Liquidity Adjustment Facility (LAF) and is intended to manage short‑term liquidity in the banking system. By injecting ₹25,000 crore for one day, the RBI aims to address any temporary liquidity mismatches identified in its review.
Regulatory and Policy Measures
The announcement is made by Deputy General Manager (Communications) Ajit Prasad, reflecting the RBI’s ongoing use of market‑based tools to fine‑tune liquidity conditions.