RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on November 05, 2026
RBI - Press Releases · Published 5 November 2026 · Last updated
The Reserve Bank of India has announced an overnight Variable Rate Reverse Repo auction to absorb ₹75,000 crore from the banking system on November 05, 2026.
Key points
- The Reserve Bank of India (RBI) decided to conduct an overnight Variable Rate Reverse Repo (VRRR) auction on Thursday, November 05, 2026.
- The notified amount for the VRRR auction is ₹75,000 crore with a tenor of 1 day.
- The bidding window for the auction will open from 09:30 AM to 10:00 AM on November 05, 2026.
- The reversal date for the liquidity absorption is scheduled for November 06, 2026, which falls on a Friday.
- The operational guidelines for the auction remain governed by the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020.
- The auction was announced by Ajit Prasad, Deputy General Manager (Communications), under Press Release: 2026-2027/1441.
- The decision follows a review of current and evolving liquidity conditions in the financial system.
- The VRRR mechanism operates under the Liquidity Adjustment Facility (LAF) framework of the central bank.
Background
- The Reserve Bank of India continuously monitors current and evolving liquidity conditions to manage money market rates and overall monetary policy stance.
- The Variable Rate Reverse Repo (VRRR) mechanism serves as a primary liquidity management tool used by the central bank to absorb surplus liquidity from the banking system.
- Operational guidelines for such auctions were formalized under the RBI's Press Release 2019-2020/1947 issued on February 13, 2020.
- The Liquidity Adjustment Facility (LAF) framework allows the RBI to manage daily liquidity frictions and align short-term interest rates with the policy repo rate.
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Original report: RBI - Press Releases