The Reserve Bank of India (RBI) will conduct a ₹50,000 crore Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) on November 3, 2026. The tenor is one day, with reversal scheduled for November 4, 2026.
The Reserve Bank of India (RBI) has announced the conduct of a Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) on Tuesday, November 3, 2026. The notified amount for the auction is ₹50,000 crore, with a tenor of one day. Bidding will be open from 10:45 AM to 11:15 AM IST, and the funds will be reversed on Wednesday, November 4, 2026.
The move follows a review of current and evolving liquidity conditions in the financial system. The VRRR auction is a key tool used by the RBI to absorb excess liquidity from the banking system. The rate at which banks bid will be determined through a variable rate auction mechanism, allowing the RBI to manage short-term interest rates effectively.
Market participants view this operation as part of the central bank's calibrated approach to liquidity management amid shifting macroeconomic conditions. For banking and financial institutions, this provides a short-term avenue to park surplus funds at market-determined rates, supporting stability in overnight money market rates.
