What changed
RBI announced a second 2-day Variable Rate Repo auction under LAF for ₹50,000 crore on June 17, 2026, based on current liquidity conditions. The auction window is 11:00 AM to 11:30 AM, with reversal on June 19, 2026. Operational guidelines follow the January 20, 2022 press release.
What it means for you
This signals RBI's active liquidity management to address short-term cash needs in the banking system. Banks can access ₹50,000 crore for 2 days at variable rates, helping smooth out temporary mismatches. It may influence short-term money market rates and interbank borrowing costs.
What you must do
- Prepare to participate in the VRR auction on June 17, 2026, between 11:00 AM and 11:30 AM.
- Ensure your treasury team has the necessary collateral and bidding limits for ₹50,000 crore.
- Monitor liquidity conditions and adjust your short-term funding strategy accordingly.
- Review operational guidelines from the January 20, 2022 press release for compliance.
Who it affects
All scheduled commercial banks, Primary dealers, Treasury departments of banks, Money market participants
What is the purpose of this VRR auction?
RBI conducts this auction to manage short-term liquidity in the banking system, providing ₹50,000 crore for 2 days to address current and evolving liquidity conditions.
When is the auction and reversal date?
The auction is on June 17, 2026, from 11:00 AM to 11:30 AM. The reversal date is June 19, 2026 (Friday).
Are the operational guidelines different from previous VRR auctions?
No, the guidelines are the same as those in RBI's Press Release 2021-2022/1572 dated January 20, 2022.