RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 23, 2026
RBI 1 hr ago·22 Sept 2026, 1:44 pm
Economy RBI
The Reserve Bank of India announced a Variable Rate Reverse Repo (VRRR) auction under its Liquidity Adjustment Facility for September 23, 2026. It will make up to ₹75,000 crore available for a one‑day tenor, with the bidding window set from 09:30 AM to 10:00 AM, and the funds will be reversed on September 24.
A reverse repo auction is a tool the RBI uses to soak up excess cash from banks, helping to keep short‑term money‑market rates stable. By pulling liquidity, the central bank can influence funding costs for banks and, indirectly, the yields on short‑term instruments that many retail investors track.
Investors should keep an eye on the final reverse‑repo rate, the amount of liquidity actually absorbed, and any commentary from the RBI about future policy moves. Changes in short‑term rates or signals of tighter or looser liquidity conditions could affect money‑market yields and bank stock valuations.
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