The Reserve Bank of India will conduct a one-day Variable Rate Repo auction under the Liquidity Adjustment Facility on October 22, with the transaction scheduled for reversal the following day. The auction window will remain open from 9:30 a.m. to 10 a.m.
BKK Bureau, New Delhi | 22 October 2026 | 1:27 PM IST
The Reserve Bank of India will conduct a ₹50,000-crore overnight Variable Rate Repo auction under the Liquidity Adjustment Facility on Thursday, October 22, 2026. The central bank said the decision followed a review of current and evolving liquidity conditions in the near term.
The auction will have a one-day tenor, meaning the transaction is scheduled to be reversed on Friday, October 23, 2026. Banks and other eligible participants will be able to submit bids during the designated window from 9:30 a.m. to 10 a.m. on October 22.
Auction details
- Instrument: Variable Rate Repo under the Liquidity Adjustment Facility
- Notified amount: ₹50,000 crore
- Tenor: One day
- Auction date: Thursday, October 22, 2026
- Bid window: 9:30 a.m. to 10 a.m.
- Date of reversal: Friday, October 23, 2026
The RBI’s announcement sets out a single auction slot for the operation. It does not announce a change to the policy rate or describe the operation as a modification to the broader monetary-policy framework. The notified amount refers to the size of the auction specified by the central bank for this particular operation.
The auction will follow the operational guidelines set out in the RBI’s press release dated January 20, 2022, identified by the central bank as Press Release 2021-2022/1572. The latest notice does not reproduce those guidelines, but confirms that they will govern the October 22 operation.
What the schedule means
The timing creates a short-duration operation spanning two working days. Bids are to be submitted during the 30-minute window on October 22, while the specified reversal date is October 23. The RBI has therefore provided participants with the key operational parameters in advance: the amount, maturity, bidding period and reversal date.
Variable Rate Repo auctions are conducted through a bidding process rather than at a single rate announced in the notice. The RBI’s release identifies the operation as a VRR auction and refers participants to the existing operational framework for the detailed rules governing participation and settlement.
The announcement was issued on October 21, 2026, one day before the scheduled auction. It was signed by Ajit Prasad, Deputy General Manager in the RBI’s Communications Department, and carries the press release number 2026-2027/1363.
Near-term liquidity operation
The RBI’s stated basis for the decision is its assessment of current and evolving liquidity conditions in the near term. The announcement is narrowly focused on the scheduled overnight operation and does not provide a broader forecast or additional details on liquidity conditions.
For market participants, the notice establishes the operational timetable for the ₹50,000-crore auction and confirms that the funds-related transaction is intended to be reversed the next day. The event will therefore be relevant to institutions planning their short-term liquidity positions around the October 22-23 period.
Why it matters
The announcement gives banks and other eligible participants a clearly defined short-term RBI liquidity operation, including the ₹50,000-crore notified amount, bidding window and next-day reversal date. It also confirms that the auction will operate under the RBI’s existing VRR guidelines.
Source: Reserve Bank of India
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