The Reserve Bank of India (RBI) has announced a Variable Rate Reverse Repo auction for September 04, 2026, with a notified amount of ₹7,00,000 crore. The auction is part of the RBI's liquidity management strategy under the Liquidity Adjustment Facility.
RBI to Conduct Variable Rate Reverse Repo Auction
On September 04, 2026, the Reserve Bank of India (RBI) will conduct a Variable Rate Reverse Repo (VRRR) auction. The notified amount for this auction is ₹7,00,000 crore, reflecting the RBI's ongoing efforts to manage liquidity conditions in the economy effectively.
The VRRR auction will take place from 09:30 AM to 10:00 AM, with a tenor of three days. The date of reversal for the auction is set for September 07, 2026, which is a Monday. This auction aims to absorb excess liquidity in the banking system and stabilize market interest rates.
In this auction process, the interest rate offered will be determined through competitive bidding. The accepted rates in previous auctions have been closely monitored to guide the participants in setting their bidding strategies. By managing liquidity through VRRR, the RBI aims to mitigate volatility in the money market.
This announcement reaffirms the RBI's commitment to maintain liquidity in the market, thereby enabling liquidity providers a platform for optimal management of their funds amidst evolving economic conditions. Practitioners should note the timings and prepare for participation accordingly.