What changed
RBI announced a 3-day Variable Rate Repo (VRR) auction under LAF for ₹1,00,000 crore on June 19, 2026. The auction window is 9:30-10:00 AM, and funds will be reversed on June 22, 2026. Operational guidelines follow the January 20, 2022 press release.
What it means for you
This VRR auction signals RBI's intent to inject liquidity into the banking system, likely to address temporary tightness. Banks can access ₹1 lakh crore for 3 days, helping manage short-term cash needs. The move may ease overnight rates and support smooth credit flow.
What you must do
- Prepare to bid in the VRR auction on June 19 between 9:30-10:00 AM if you need short-term liquidity.
- Review your bank's cash position to decide participation amount up to the notified ₹1,00,000 crore.
- Ensure compliance with operational guidelines from RBI's January 20, 2022 press release.
- Monitor liquidity conditions post-auction for potential impact on call money and repo rates.
Who it affects
All scheduled commercial banks, Primary dealers, Treasury desks managing short-term liquidity
What is the purpose of this VRR auction?
RBI conducts this auction to inject short-term liquidity into the banking system, based on a review of current and evolving liquidity conditions.
When will the funds be reversed?
The auction is for a 3-day tenor, with reversal scheduled on Monday, June 22, 2026.
Who can participate in this auction?
All eligible participants under LAF, typically scheduled commercial banks and primary dealers, can bid in the auction.