The RBI will conduct a ₹2 lakh crore variable rate reverse repo (VRRR) auction on September 28, 2026, to manage liquidity. The 1-day auction will be held from 9:30 AM to 10:00 AM, with reversal on September 29.
RBI to Conduct VRRR Auction on September 28, 2026
The Reserve Bank of India has announced an Overnight Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility (LAF) to be conducted on Monday, September 28, 2026. The notified amount is ₹2,00,000 crore for a tenor of one day, with the auction window open from 9:30 AM to 10:00 AM. The reversal of the transaction will occur on September 29, 2026.
This move follows a review of current and evolving liquidity conditions in the financial system. The RBI has increasingly used VRRR auctions to absorb excess liquidity, providing fine-tuned control over short-term rates. Market participants, particularly banks and primary dealers, must prepare for the auction under the standard LAF framework.
For banking and financial regulation practitioners, such operations signal the RBI’s near-term monetary stance. The use of variable-rate tools reflects active liquidity management, which can impact short-term interest rates and interbank lending patterns.