RBI to conduct ₹2 lakh crore VRRR auction on October 12
According to the Reserve Bank of India, a 3-day Variable Rate Reverse Repo auction will be held on October 12, 2026.
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Key facts
- The Reserve Bank of India will conduct a VRRR auction on October 12, 2026.
- The notified amount for the 3-day auction is ₹2,00,000 crore.
- The auction window timing is 09:30 AM to 10:00 AM.
- The date of reversal for the auction is October 15, 2026.
According to the Reserve Bank of India, the central bank will conduct a 3-day Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility on Monday, October 12, 2026. The notified amount for the auction is ₹2,00,000 crore.
The auction window will remain open from 09:30 AM to 10:00 AM, with the reversal scheduled for October 15, 2026. Operational guidelines for the auction will follow the Reserve Bank's previous press release from February 13, 2020.
Why it matters
This liquidity management operation by the Reserve Bank of India allows the central bank to absorb surplus funds from the banking system for a short duration. By mopping up ₹2,00,000 crore through the three-day Variable Rate Reverse Repo auction, the RBI aims to manage short-term money market rates and align them with the policy repo rate. Banks and financial institutions participating in the auction will park their excess liquidity with the central bank, which helps influence overall financial conditions and short-term borrowing costs across the economy.
- Economy
- RBI
- Regulatory Policy
Sources
Source: Reserve Bank of India