RBI to hold 7-day Variable Rate Repo auction on June 16, 2026

The Reserve Bank of India (RBI) will conduct a 7-day Variable Rate Repo (VRR) auction on Tuesday, June 16, 2026, to address evolving liquidity conditions. The auction will offer ₹1,50,000 crore and will be held between 9:30 AM and 10:00 AM. The reversal date is June 23, 2026.

The VRR auction is part of the RBI's Liquidity Adjustment Facility (LAF), a mechanism used to manage short-term liquidity in the banking system. Under this facility, banks can borrow funds from the RBI at a variable interest rate determined through the auction process.

The operational guidelines for this auction will follow the framework outlined in the RBI's press release dated January 20, 2022. These guidelines ensure transparency and consistency in the auction process.

This move comes as the RBI continues to monitor and respond to liquidity conditions in the financial system. By conducting such auctions, the central bank aims to provide short-term liquidity support to banks, ensuring smooth functioning of the financial markets.

Market participants, including banks and financial institutions, are expected to participate actively in the auction to meet their short-term funding requirements.

Key Points

• RBI to hold a 7-day Variable Rate Repo auction on June 16, 2026.
• Auction amount is ₹1,50,000 crore.
• Auction timing is 9:30 AM to 10:00 AM.
• Reversal date is June 23, 2026.
• Guidelines follow RBI's January 20, 2022 framework.

FAQ

What is the purpose of the VRR auction?

The VRR auction aims to address short-term liquidity needs in the banking system.

When is the reversal date for this auction?

The reversal date is June 23, 2026.

Source: Reserve Bank of India press release, Mon, 15 Jun 2026 19:40:00. https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62940