The Reserve Bank of India has announced a Variable Rate Reverse Repo auction for August 24, 2026, to address liquidity conditions. The auction will have a notified amount of ₹1,50,000 crore with a tenor of one day.
RBI to Conduct Overnight Variable Rate Reverse Repo Auction
On August 24, 2026, the Reserve Bank of India (RBI) will conduct a Variable Rate Reverse Repo auction as part of its liquidity management strategy. The auction is scheduled to take place between 11:00 AM and 11:30 AM, with a reversal date set for August 25, 2026.
The notified amount for this auction stands at ₹1,50,000 crore, reflecting the RBI's response to current liquidity conditions in the banking sector. The auction's one-day tenor is indicative of the RBI's short-term liquidity management approach, critical for maintaining market stability.
Practitioners should note the impact of this auction on money market rates and liquidity positions. Participation by banks and financial institutions will be instrumental in absorbing excess liquidity and guiding interest rate dynamics.
Citations
- RBI Press Release dated August 24, 2026