RBI Announces ₹1.5 Lakh Crore 7-Day VRR Auction

Mumbai, March 16, 2026: The Reserve Bank of India (RBI) has announced that it will conduct a 7-day Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility (LAF) on Tuesday, March 17, 2026, in response to evolving liquidity conditions in the banking system.

Auction Details

Notified Amount: ₹1,50,000 crore
Tenor: 7 days
Auction Window: 9:30 AM – 10:00 AM IST
Date of Reversal: March 24, 2026 (Tuesday)

The operational guidelines for this auction will follow the RBI Press Release 2021-2022/1572 dated January 20, 2022, ensuring standard procedures for participation and settlement.

Purpose and Significance

Variable Rate Repo (VRR) auctions are a key instrument under the RBI’s Liquidity Adjustment Facility, allowing banks to manage short-term liquidity efficiently. This auction will:

Inject short-term liquidity into the banking system
Support smooth functioning of financial markets
Facilitate interest rate stability and overall monetary management

The RBI’s Department of Communication noted that the VRR is part of ongoing measures to monitor and respond to liquidity fluctuations while supporting economic activity.

Contact and Reference

For operational details and participation, banks and financial institutions may refer to the RBI website at www.rbi.org.in or contact the Department of Communication at the Central Office, Mumbai.