India, May 29 -- The Reserve Bank of India (RBI) has decided to conduct a three-day Variable Rate Repo (VRR) auction of Rs 1 lakh crore on May 29, 2026, under the Liquidity Adjustment Facility (LAF), following a review of prevailing and evolving liquidity conditions in the banking system.
The auction will be conducted between 10:00 AM and 10:30 AM on Friday, with funds set to mature on June 1, 2026. Through the VRR mechanism, the RBI injects short-term liquidity into the banking system, helping address temporary liquidity mismatches and ensuring smooth functioning of money markets.
The central bank stated that the auction will be conducted in line with the operational guidelines issued earlier for VRR operations.
Published by HT Digital ...