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RBI to conduct 4-day Variable Rate Repo (VRR) auction under LAF on November 09, 2026

RBI - Press Releases · Published 7 November 2026 · Last updated

The Reserve Bank of India has announced a 4-day Variable Rate Repo auction for ₹50,000 crore under the Liquidity Adjustment Facility to manage near-term banking liquidity conditions.

Key points

  • The Reserve Bank of India will conduct a Variable Rate Repo (VRR) auction on Monday, November 09, 2026.
  • The notified amount for the VRR auction is ₹50,000 crore.
  • The tenor of the VRR auction is 4 days, with the date of reversal set for November 13, 2026 (Friday).
  • The bidding window for banks to participate in the auction will remain open from 9:30 AM to 10:00 AM on November 09, 2026.
  • The auction will be conducted under the Liquidity Adjustment Facility (LAF) framework.
  • The operational guidelines for this auction will follow the Reserve Bank's previous guidelines issued via Press Release 2021-2022/1572 dated January 20, 2022.
  • The announcement was communicated by Ajit Prasad, Deputy General Manager (Communications) of the Reserve Bank of India.
  • The official press release tracking number for this auction notice is 2026-2027/1465.

Background

  • The Liquidity Adjustment Facility (LAF) has historically served as the primary monetary policy instrument of the Reserve Bank of India for day-to-day liquidity management in the banking system.
  • Variable Rate Repo (VRR) auctions were deployed more actively by the central bank following liquidity reviews to manage fluctuations in systemic liquidity and short-term interest rates.
  • Operational guidelines for conducting such variable rate auctions were previously standardized by the Reserve Bank through its circular framework issued on January 20, 2022.
  • The central bank continuously reviews current and evolving near-term liquidity conditions to decide the appropriate quantum, timing, and tenor of liquidity injections or absorptions.

UPSC relevance, Prelims facts and Mains angle for this issue are in the full SWAदेSH note.

Original report: RBI - Press Releases

Sources