RBI to conduct VRRR auction for ₹6 lakh crore on Aug 31
This auction comes in the backdrop of the banking system being awash with liquidity
The Reserve Bank of India (RBI) plans to hold a 15-day Variable Rate Reverse Repo (VRRR) auction on August 31, 2026, for an astonishing ₹6 lakh crore. This auction is expected to be the largest of its kind in recent times, as the banking system is currently inundated with liquidity. According to RBI data, the liquidity system within the banking sector reached ₹3,74,942.34 crore as of August 27, 2026.
Over the past month, Foreign Currency Non-Resident (Bank) deposits have surged by $65.397 billion, reflecting the growing influx of foreign currency deposits. The RBI's concessional swap facility has also seen significant activity, with banks and public sector undertakings collectively raising $7.451 billion through Overseas Foreign Currency Borrowings and External Commercial Borrowings.
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