The Reserve Bank of India will hold a second Variable Rate Reverse Repo auction on September 1, 2026, with a notified amount of ₹4,00,000 crore for a one-day tenor. The auction will take place from 11:00 AM to 11:30 AM.
RBI to Conduct Overnight Variable Rate Reverse Repo Auction
On September 1, 2026, the Reserve Bank of India (RBI) will conduct a second Variable Rate Reverse Repo (VRRR) auction as part of its liquidity management strategy. The notified amount for this auction is set at ₹4,00,000 crore and will have a tenor of one day.
The auction is scheduled to occur within a window of 11:00 AM to 11:30 AM, with the reversal date set for September 2, 2026. This move comes as a result of the RBI's review of current and evolving liquidity conditions in the economy.
Such auctions are instrumental in absorbing excess liquidity from the banking system and help maintain stability in the money markets. Participants in the auction will include banks and financial institutions, allowing for efficient liquidity management.
For financial practitioners, an understanding of these operations is crucial for effective liquidity management strategies during periods of fluctuating market conditions. Keeping track of RBI's actions can provide valuable insights into future monetary policy directions.
Citations
- Reserve Bank of India Press Release (2026) No. 63488