RBI To Conduct Rs 2 Lakh Crore 7-Day VRRR Auction On Apr 17

The Reserve Bank of India (RBI) on Thursday said it will conduct a Rs 2 lakh crore seven-day variable rate reverse repo (VRRR) auction on April 17, according to a release.

"In view of the surplus transient liquidity conditions prevailing, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Friday, April 17, 2026," the RBI said.

The auction will take place between 9:30 am and 10:00 am, and the reversal of these funds will take place on April 24, as per the RBI's notification.

Usually, there is an outflow of funds on the 20th of every month on account of GST payments, which puts pressure on the systemic liquidity and money market rates. The reversal of seven-day VRRR funds after the GST outflows will help the system liquidity and keep overnight rates under check.

Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 5.22 lakh crore as of April 15.

Before this, the central bank had conducted a seven-day VRRR auction on April 10 and pulled out Rs 2,00,041 crore of transient liquidity from the banking system. These funds are set to mature on April 17.

"Going ahead, we will continue to be proactive and pre-emptive in liquidity management and ensure sufficient liquidity in the banking system to meet the productive requirements of the economy," RBI Governor Sanjay Malhotra said during the April monetary policy.