RBI announces ₹75,000 crore Overnight VRR auction on June 15

The Reserve Bank of India (RBI) has announced that it will conduct an Overnight Variable Rate Repo (VRR) auction under its Liquidity Adjustment Facility (LAF) on Monday, June 15, 2026. This decision comes after a review of the current and evolving liquidity conditions in the financial system.

The auction will offer a notified amount of ₹75,000 crore for a one-day tenor. The bidding window is scheduled to be open from 9:30 AM to 10:00 AM on June 15, with the reversal date set for Tuesday, June 16, 2026. The operational guidelines for this auction will follow the framework outlined in the RBI's earlier press release dated January 20, 2022.

Variable Rate Repo auctions are tools used by the RBI to manage short-term liquidity in the banking system. By offering funds at variable interest rates, the central bank aims to ensure efficient liquidity distribution and stabilize market conditions.

This announcement is significant as it reflects the RBI's proactive approach in addressing liquidity dynamics, which are crucial for maintaining financial stability. Such measures are particularly important in periods of fluctuating economic activity or market uncertainty.

Ajit Prasad, Deputy General Manager (Communications), issued the press release detailing the auction specifics. Market participants are expected to adhere to the operational guidelines provided by the RBI for smooth execution of the auction process.

Source: Reserve Bank of India press release, Fri, 12 Jun 2026 19:05:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62925