RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 22, 2026
RBI 1 hr ago·21 Sept 2026, 8:30 pm
Economy RBI
RBI announced it will run a Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility on September 22, 2026. The operation will involve Rs 75,000 crore for a one‑day tenor, with bids accepted between 9:30 am and 10:00 am and the funds reversed on September 23.
A reverse repo is a tool the central bank uses to mop up excess cash from banks. By offering a short‑term, variable‑rate instrument, the RBI can influence overnight money‑market rates and manage liquidity in the banking system. For investors, the outcome can affect short‑term interest rates, the cost of borrowing for companies, and yields on money‑market instruments.
Market participants will watch the final reverse‑repo rate, any signals about future liquidity policy, and the reaction in money‑market yields and the broader equity market. Continued monitoring of RBI’s LAF operations will help gauge short‑term funding conditions.
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- Category: Economy.
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