RBI will conduct a second two-day VRR auction of ₹50,000 crore on June 17
The Reserve Bank of India is conducting a second two-day Variable Rate Repo (VRR) auction on June 17, 2026, amid changing liquidity conditions in the Indian banking system. This move is being taken to provide short-term funds of ₹50,000 crore under the Liquidity Adjustment Facility (LAF).
Highlights
- On June 17, 2026, RBI will conduct the second two-day VRR auction for ₹50,000 crore from 11:00 AM to 11:30 AM.
- The reversal date for this VRR auction has been set as June 19, 2026, targeting short-term liquidity management.
- The auction operation will be conducted in accordance with the guidelines dated January 20, 2022, ensuring a familiar process for market participants.
This article was translated from the original. Read the original version by our correspondent here.
Auction Program for Liquidity Management
Reserve Bank of India, according to a Reserve Bank of India press release, will hold this second VRR auction on Wednesday, June 17, 2026, from 11:00 AM to 11:30 AM. The notified amount for the auction is ₹50,000 crore, and its tenure is set for two days.The reversal date for this operation is Friday, June 19, 2026. The central bank stated that this decision was made after reviewing the current and evolving liquidity conditions.
Operation under 2022 Guidelines
The central bank clarified that the operational guidelines for this auction will remain the same as those provided in the Reserve Bank press release 2021-2022/1572 dated January 20, 2022. This indicates that the process for market participants will remain consistent with the previously established framework.This step highlights RBI's active role in managing short-term funding conditions and may help the banking sector address near-term liquidity requirements. The press release is signed by Ajit Prasad, Deputy General Manager, Department of Communication.
Our previous report discussed the measures taken by RBI and the government to attract foreign capital and support the external sector, such as the expansion of the Fully Accessible Route, tax exemptions for foreign investors on government bonds, and initiatives related to FCNR(B)/forex swaps. It was also mentioned that these measures could somewhat ease balance of payments and banking funding pressures, although challenges like foreign portfolio outflows and rupee weakness may persist.
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