RBI will conduct a two-day VRR auction of ₹50,000 crore on June 17
The Reserve Bank of India, after reviewing the current and evolving liquidity conditions, has decided to conduct a two-day Variable Rate Repo (VRR) auction on June 17, 2026. This will be under the Liquidity Adjustment Facility (LAF) for an amount of ₹50,000 crore, with the reversal scheduled for June 19, 2026.
Highlights
- RBI will conduct a two-day VRR auction of ₹50,000 crore on June 17, 2026, from 9:30 AM to 10:00 AM.
- The reversal date of the auction has been set for June 19, 2026; this step has been taken after assessing the short-term liquidity situation.
- The operational guidelines will remain unchanged as per the RBI press release 2021-2022/1572 dated January 20, 2022, ensuring continuity in the process.
This article was translated from the original. Read the original version by our correspondent here.
Auction Schedule under Liquidity Management
According to the press release from the RBI, the auction will be held on Wednesday, June 17, 2026, from 9:30 AM to 10:00 AM. The notified amount for this two-day VRR operation is set at ₹50,000 crore.The central bank has stated that the reversal date for this auction will be Friday, June 19, 2026. This step has been taken after assessing the short-term liquidity conditions in the banking system.
Impact on Market and Banking System
The RBI uses VRR auctions to balance short-term liquidity needs and maintain orderly conditions in the money market. Such operations provide banks with funds for a limited period, aiding in the management of short-term rates.The central bank also clarified that the operational guidelines for the auction will remain the same as those outlined in the Reserve Bank’s press release 2021-2022/1572 dated January 20, 2022. This ensures continuity for participants in terms of process and conditions under the previously established framework.
Our previous report discussed the government and RBI measures to boost foreign capital inflows, including tax exemptions on government bonds for FPIs, expansion of the Fully Accessible Route, and liquidity arrangements linked to forex/FCNR(B). The article noted that these steps could somewhat ease pressure on the balance of payments and banking funding, though they are considered a partial solution compared to the required monthly capital flows.
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