RBI announces 26-day VRRR auction to absorb Rs 5 lakh crore surplus liquidity

The Reserve Bank of India (RBI) announced plans to conduct a Variable Rate Reverse Repo (VRRR) auction lasting 26 days, scheduled for Friday, September 11, 2026. The auction will take place between 9:30 AM and 10:00 AM on October 7, 2026, with a notified amount of ₹5,00,000 crore. The operational guidelines for the auction remain consistent with those outlined in the RBI's Press Release 2019-2020/1947 dated February 13, 2020.

Participants will have the option to request premature reversal of their bids placed during the auction. Such requests must be submitted through the E-Kuber portal between 09:00 and 17:00 hours on working days in Mumbai. Partial reversal of bids is permitted. Once a premature reversal request is submitted in the E-Kuber portal, the participant must also notify the Financial Markets Operations Department via email at 022-2263 0982 / 2263 0008.

The settlement of premature reversals will occur at the start of the next working day following the date of the request.

Upon the date of reversal, the participant's current account with the Reserve Bank will receive the principal amount plus accrued interest for the lending period. Concurrently, the securities offered as collateral by the RBI will be debited from the participant's reverse repo constituent SGL account. Requests for premature reversal can be submitted at least two working days prior to the originally scheduled reversal date.