The Reserve Bank of India will hold the one-day auction from 9:30 am to 10:00 am on October 21, with the funds scheduled for reversal on October 22. The central bank said the operation follows a review of current and evolving near-term liquidity conditions.
BKK Bureau, New Delhi | 20 October 2026 | 7:02 AM IST
The Reserve Bank of India will conduct a ₹50,000-crore overnight Variable Rate Repo auction under the Liquidity Adjustment Facility on Wednesday, October 21, 2026. The central bank announced the operation in a press release issued on October 19.
The auction will have a one-day tenor. Banks and other eligible participants will be able to submit bids during the notified window from 9:30 am to 10:00 am on October 21, according to the RBI’s schedule.
The RBI has set October 22, 2026, as the date of reversal for the operation. The reversal date is the day after the auction, consistent with the overnight tenor specified in the notification.
RBI cites near-term liquidity conditions
The central bank said its decision followed a review of “current and evolving liquidity conditions in the near term.” The release did not provide a separate estimate of the liquidity shortfall or surplus behind the operation, and it did not announce any change to policy rates in connection with the auction.
The notified amount for the auction is ₹50,000 crore. The RBI has not stated in the release whether the full notified amount will necessarily be allotted, as the operation will be conducted through a variable-rate auction. The notification identifies the operation as a Variable Rate Repo auction, under which bids are submitted during the specified window.
Operational framework
The RBI said that the operational guidelines for the auction will be the same as those set out in its press release dated January 20, 2022. The latest notification does not reproduce those guidelines, but confirms that they will govern the October 21 operation.
The announcement gives market participants a defined timetable for the central bank’s short-term liquidity operation: the auction will open at 9:30 am and close at 10:00 am on October 21, while the scheduled reversal will take place on October 22. The notified amount and tenor are fixed in the RBI’s release.
The decision is an operational action under the RBI’s Liquidity Adjustment Facility rather than a new monetary-policy announcement. The release was signed by Ajit Prasad, Deputy General Manager in the RBI’s Communications department, and carries the press release number 2026-2027/1355.
With the auction scheduled for October 21, the RBI’s notification provides banks and other eligible participants with advance notice of the amount, bidding window and repayment schedule. The operation is specifically described as an overnight VRR auction, meaning its stated tenor runs for one day before the scheduled reversal on October 22.
Why it matters
The announcement sets out a ₹50,000-crore, one-day RBI liquidity operation and gives market participants a precise bidding and reversal schedule. It also indicates that the central bank is actively using its Liquidity Adjustment Facility in response to its assessment of near-term liquidity conditions.
Source: Reserve Bank of India
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