The RBI will hold a Variable Rate Reverse Repo (VRRR) auction on August 17, 2026, totaling ₹2,00,000 crore to manage liquidity.
Variable Rate Reverse Repo Auction Announced
The Reserve Bank of India has resolved to conduct a 7-day Variable Rate Reverse Repo (VRRR) auction on August 17, 2026. The auction is set for ₹2,00,000 crore and aims to address the evolving liquidity conditions across the financial sector.
The auction will take place between 9:30 AM and 10:00 AM, with expected reversals scheduled for August 24, 2026. This strategic move is a part of the RBI's liquidity management framework, which allows banks to optimize their excess funds temporarily.
Practitioners are advised to monitor the outcomes of this VRRR auction closely as the results will have broader implications on liquidity management strategies and interest rates prevailing in the market.
Citations
- RBI Notification on VRRR Auction (2026)