RBI to conduct Overnight Variable Rate Reverse Repo (VRRR) auction under LAF on September 30, 2026
RBI 1 hr ago·29 Sept 2026, 1:50 pm
Economy RBI
RBI announced it will run an overnight Variable Rate Reverse Repo (VRRR) auction under the Liquidity Adjustment Facility on September 30, 2026. The auction will involve 2 lakh crore rupees for a one‑day tenor, with the reversal scheduled for October 1.
The reverse repo operation is a tool RBI uses to absorb excess liquidity from the banking system. By offering a variable rate, it helps anchor short‑term money‑market rates and signals the central bank’s view on liquidity conditions. For investors, it can influence yields on short‑term instruments and affect banks' cost of funds, which may filter into equity valuations, especially in financial stocks.
Market participants will watch the rate at which banks bid in the VRRR auction and any subsequent changes in the repo rate corridor. Further RBI policy updates or additional LAF operations in the coming weeks will be key signals of the central bank’s stance on inflation and growth.
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- Category: Economy.
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