What changed
The RBI has decided to conduct a Variable Rate Repo auction to manage current and evolving liquidity conditions. The auction will be held on June 17, 2026, with a notified amount of ₹50,000 crore and a tenor of 2 days. The operational guidelines for the auction will be the same as those given in a previous press release.
What it means for you
This auction is intended to absorb excess liquidity from the banking system and manage liquidity conditions. It may have an impact on short-term interest rates and money market conditions. Banks and lenders should be aware of the auction and its potential effects on their liquidity and funding costs.
What you must do
- Review your bank's liquidity position
- Assess the potential impact on your funding costs
- Consider participating in the auction if necessary
Who it affects
Banks, Lenders, Financial institutions
What is the purpose of the Variable Rate Repo auction?
To manage current and evolving liquidity conditions
When will the auction be held?
June 17, 2026
What is the notified amount of the auction?
₹50,000 crore