The Reserve Bank of India has announced a Second Variable Rate Repo auction on July 17, 2026, with a notified amount of ₹50,000 crore. The auction aims to address current liquidity conditions and is scheduled for a three-day tenor.
RBI Announces Second VRR Auction for July 17, 2026
On July 17, 2026, the Reserve Bank of India (RBI) will conduct a Second Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility (LAF) to manage liquidity conditions in the banking system. The auction will involve a notified amount of ₹50,000 crore, with a tenor of three days, and will be held from 10:45 AM to 11:15 AM.
The VRR auction serves as a tool for the RBI to infuse liquidity into the market by allowing banks to borrow funds against government securities at a variable interest rate. This particular auction is set to conclude with a reversal date on July 20, 2026. A review of the market's liquidity situation led to this decision, indicating proactive measures by the RBI to maintain market stability.
Financial institutions are advised to prepare their bids accordingly, as the VRR mechanism is a critical component of the monetary policy framework. This move reflects the RBI's ongoing commitment to ensuring adequate liquidity in the financial system during fluctuating economic conditions.
Citations
- RBI Directive No. CO.DOS.SED.No.S592/45-11-001/2024-25 (2026)