RBI Announces Overnight VRRR Auction of Rs 75,000 Crore on December 4

The Reserve Bank of India (RBI) has announced that it will conduct an Overnight Variable Rate Reverse Repo (VRRR) auction on December 4, 2025, as part of its liquidity adjustment measures. The decision follows the central bank’s review of the current and evolving liquidity conditions in the financial system.

Under this operation, the RBI will absorb excess liquidity through the auction of Rs 75,000 crore for a one-day tenor.
The auction window will remain open from 9:30 AM to 10:00 AM, and the reversal of funds is scheduled for December 5, 2025 (Friday).

The RBI has also reiterated that the operational guidelines for this auction will remain unchanged and will follow the framework outlined in the central bank’s press release issued on February 13, 2020.

The VRRR mechanism continues to play a crucial role in managing short-term liquidity, supporting stability in money markets, and ensuring smoother transmission of monetary policy.