The Reserve Bank of India will conduct the auction under the Liquidity Adjustment Facility, with bids accepted from 9:30 am to 10:00 am. The funds are scheduled for reversal on October 30.
BKK Bureau, New Delhi | 23 October 2026 | 11:27 PM IST
The Reserve Bank of India will conduct a four-day Variable Rate Repo (VRR) auction for ₹1,50,000 crore on Monday, October 26, 2026. The auction will be carried out under the Liquidity Adjustment Facility (LAF), according to an RBI press release issued on October 23.
The notified amount for the operation is ₹1.5 lakh crore. The repo tenor has been set at four days, meaning the operation will run from the auction date until the scheduled reversal date specified by the central bank.
The bidding window will remain open for 30 minutes, from 9:30 am to 10:00 am on October 26. The RBI has listed October 30, 2026, which falls on a Friday, as the date of reversal for the operation.
The central bank said the decision followed a review of current and evolving liquidity conditions in the near term. The announcement does not provide additional details on the specific liquidity conditions considered in reaching the decision.
Operational framework
The RBI said the operational guidelines for the auction will be the same as those set out in its press release dated January 20, 2022. That earlier release is identified in the announcement as RBI Press Release 2021-2022/1572.
The latest notification sets out the key parameters for the operation in a single schedule: a notified amount of ₹1,50,000 crore, a four-day tenor, a 9:30 am to 10:00 am auction window and a reversal date of October 30. The release does not announce any change to those parameters after the auction date.
VRR auctions are conducted at a variable rate under the RBI’s liquidity-management framework. In this instance, the central bank has specified the amount it intends to offer and the period for which the operation will remain outstanding, while directing participants to follow the operational process referenced in the January 2022 guidelines.
The notice was signed by Ajit Prasad, Deputy General Manager in the RBI’s Communications Department. It carries the press-release number 2026-2027/1383 and was published on the RBI website.
For banks and other market participants using the RBI’s liquidity operations, the announcement provides the schedule and terms needed to prepare for the October 26 auction. It also establishes the date on which the funds associated with the four-day operation are to be reversed.
Why it matters
The announcement gives financial-market participants a defined opportunity to access ₹1.5 lakh crore through the RBI’s LAF and provides a fixed auction window, four-day tenor and October 30 reversal date. It is also a direct indication that the RBI is adjusting its liquidity operations in response to its review of near-term liquidity conditions.
Source: Reserve Bank of India
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