📄 Source: Reserve Bank of India · Press Release prid 63103
Quick answerThe RBI will hold an overnight Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility on July 8, 2026, offering ₹25,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM, with reversal on July 9, 2026. (RBI press release, 7 Jul 2026)
What changed
A VRR auction is being conducted on July 8, 2026. The RBI has earmarked ₹25,000 crore for a one‑day repo at a variable rate, with the bidding window limited to half an hour in the morning. The reversal of the repo will occur the next day, July 9, 2026. Operational rules follow the guidelines issued in the RBI’s Jan 20, 2022 press release (2021‑2022/1572).
What it means for you
Banks and other eligible lenders can access short‑term liquidity at a market‑driven rate, helping them manage daily cash mismatches. The variable rate mechanism may lead to more responsive pricing of overnight funds, influencing the overall cost of borrowing in the inter‑bank market. Participants must align their liquidity plans with the new auction schedule.
What you must do
Review the Jan 20, 2022 operational guidelines (Press Release 2021‑2022/1572) for VRR auctions.
Prepare to submit bids between 09:30 AM and 10:00 AM on July 8, 2026.
Adjust intraday liquidity buffers to accommodate the potential reversal on July 9, 2026.
Monitor the variable repo rate outcome and reflect it in pricing of short‑term loans.
The RBI will auction ₹25,000 crore for a one‑day (overnight) tenor.
When can participants submit their bids?
Bids are accepted on July 8, 2026, from 09:30 AM to 10:00 AM.
Which guidelines govern this auction?
The auction follows the operational guidelines outlined in RBI Press Release 2021‑2022/1572 dated 20 Jan 2022.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
The RBI will hold an overnight Variable Rate Repo (VRR) auction under the Liquidity Adjustment Facility on July 8, 2026, offering ₹25,000 crore for a one‑day tenor. Bidding will be open from 09:30 AM to 10:00 AM, with reversal on July 9, 2026. (RBI press release, 7 Jul 2026)
Review the Jan 20, 2022 operational guidelines (Press Release 2021‑2022/1572) for VRR auctions.
Prepare to submit bids between 09:30 AM and 10:00 AM on July 8, 2026.
Adjust intraday liquidity buffers to accommodate the potential reversal on July 9, 2026.
Monitor the variable repo rate outcome and reflect it in pricing of short‑term loans.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Scheduled Commercial Banks, Cooperative Banks, NBFCs, Primary Dealers), your first concrete step on “RBI to run Overnight Variable Rate Repo auction on July 8, 2026” is: “Review the Jan 20, 2022 operational guidelines (Press Release 2021‑2022/1572) for VRR auctions.” (RBI issued this 08 Jul 2026).
Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63103 -- RBI to run Overnight Variable Rate Repo auction on July 8, 2026
Issued: 08 Jul 2026
Action required: Review the Jan 20, 2022 operational guidelines (Press Release 2021‑2022/1572) for VRR auctions.
Action required: Prepare to submit bids between 09:30 AM and 10:00 AM on July 8, 2026.
Action required: Adjust intraday liquidity buffers to accommodate the potential reversal on July 9, 2026.
Action required: Monitor the variable repo rate outcome and reflect it in pricing of short‑term loans.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 07 Jul 2026, 19:46 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63103 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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