RBI announces ₹1 lakh crore 7-day variable rate repo auction for liquidity support

The Reserve Bank of India will conduct a ₹1,00,000 crore seven-day Variable Rate Repo auction on Monday, 19 October 2026, taking proactive steps to maintain liquidity across the country's financial system.

In an official release, RBI Deputy General Manager Ajit Prasad confirmed that the decision follows a review of current and evolving liquidity conditions. The transaction will provide short-term cash support to commercial banks, ensuring the financial sector remains well-funded to sustain ongoing economic expansion and credit delivery.

Key parameters of the VRR auction

The central bank set out the operational schedule for the repo transaction, which allows commercial lenders to borrow short-term funds against government securities.

Operational terms and market context

The RBI stated that operational guidelines for Monday's auction will follow the established framework outlined in its press release dated 20 January 2022. Banks can submit their bids on the RBI's electronic platform during the half-hour window on Monday morning.

Reversal of the funds is scheduled for Monday, 26 October 2026, when participating institutions will return the liquidity to the central bank. By actively managing these short-term flows under the Liquidity Adjustment Facility, the RBI maintains financial system balance, supporting steady interest rates and robust economic activity across India's banking sector.