The Reserve Bank of India (RBI) will conduct a variable rate repo (VRR) auction of ₹50,000 crore for a one-day tenor on October 21, 2026, from 9:30 AM to 10:00 AM under the Liquidity Adjustment Facility (LAF). The reversal will occur on October 22, 2026.
RBI Announces Overnight VRR Auction for ₹50,000 Crore
The Reserve Bank of India (RBI) has announced the conduct of a Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility (LAF) on October 21, 2026. The auction will have a notified amount of ₹50,000 crore and a tenor of one day, scheduled between 9:30 AM and 10:00 AM. The reversal of the repo will take place on October 22, 2026.
This move follows the RBI’s ongoing assessment of current and evolving liquidity conditions in the financial system. Overnight repo operations are instrumental in managing short-term liquidity, ensuring alignment of market interest rates with the policy repo rate. The auction will be conducted through the E-Kuber platform, using a multiple-price bidding method.
Market participants should prepare for temporary absorption of liquidity during the auction window. The operation reflects the central bank’s proactive stance in maintaining monetary stability ahead of potential volatility in government securities and state loan distributions.
