RBI to conduct 2-day VRR auction under LAF on June 17, 2026 Jun 16, 2026

The Reserve Bank of India (RBI) is set to conduct two-day Variable Rate Repo auction under the Liquidity Adjustment Facility (LAF) on June 17, 2026. This operation is part of the RBI’s ongoing efforts to manage liquidity in the banking system and ensure smooth monetary transmission. The auction will offer a total amount of Rs 50,000 crore, allowing eligible banks to bid for funds at variable rates determined through competitive bidding.

The VRR mechanism enables the RBI to inject liquidity into the financial system while allowing banks to access funds at market-determined rates. This approach provides flexibility to both the central bank and commercial banks in managing short-term liquidity needs. The auction will be conducted electronically, following standard procedures outlined under the LAF framework.

This announcement comes amid continued efforts by the RBI to maintain stability in the money market and support economic activity. The outcome of the auction will be closely monitored by market participants for insights into short-term interest rate trends and liquidity conditions.