RBI Announces VRR Auctions Under LAF
RBI to conduct Variable Rate Repo auctions worth ₹1.5 lakh crore on December 15 and 16, 2025, to manage liquidity conditions.
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The Reserve Bank of India (RBI) has announced that it will conduct Variable Rate Repo (VRR) auctions under the Liquidity Adjustment Facility (LAF) on December 15 and December 16, 2025, following a review of prevailing liquidity conditions.
Under the plan, RBI will conduct two VRR auctions of ₹75,000 crore each, amounting to a total of ₹1.5 lakh crore. The auction on December 15 will have a tenor of 11 days, while the December 16 auction will have a tenor of 10 days. Both auctions will be held between 9:30 AM and 10:00 AM, with a common reversal date of December 26, 2025.
The auctions will be conducted as per the operational guidelines issued by RBI on January 20, 2022. The move is aimed at fine-tuning liquidity in the banking system and ensuring orderly money market conditions.