📄 Source: Reserve Bank of India · Press Release prid 63058
Quick answerRBI will conduct a 2-day Variable Rate Repo (VRR) auction under LAF for ₹1.25 lakh crore on July 1, 2026, with bidding open from 9:30–10:00 AM and reversal on July 3, 2026. Eligible participants can bid for funds at variable rates to manage short-term liquidity needs.
What changed
RBI announced a 2-day Variable Rate Repo auction under LAF for a notified amount of ₹1.25 lakh crore on July 1, 2026. The auction timing is 9:30 AM to 10:00 AM, with reversal on July 3, 2026. Operational guidelines follow the January 20, 2022 press release.
What it means for you
This injection signals RBI's intent to ease short-term liquidity pressures. Banks can access funds at variable rates, helping manage quarter-end or seasonal cash needs. The 2-day tenor suggests a calibrated, near-term liquidity adjustment.
What you must do
Prepare bids for the VRR auction on July 1, 2026, between 9:30-10:00 AM.
Align your liquidity position to participate effectively in the ₹1.25 lakh crore auction.
Review the operational guidelines from the January 20, 2022 press release for bidding procedures.
Who it affects
All scheduled commercial banks, Primary dealers, Liquidity managers at financial institutions
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the purpose of this VRR auction?
RBI conducts this auction to inject liquidity into the banking system, responding to current and evolving liquidity conditions.
When will the funds be reversed?
The auction reverses on July 3, 2026 (Friday), meaning banks must repay the borrowed amount on that date.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI will conduct a 2-day Variable Rate Repo (VRR) auction under LAF for ₹1.25 lakh crore on July 1, 2026, with bidding open from 9:30–10:00 AM and reversal on July 3, 2026. Eligible participants can bid for funds at variable rates to manage short-term liquidity needs.
Q2. Who does this circular apply to?
All scheduled commercial banks, Primary dealers, Liquidity managers at financial institutions
Q3. What is the first thing you should do about it?
Prepare bids for the VRR auction on July 1, 2026, between 9:30-10:00 AM.
Prepare bids for the VRR auction on July 1, 2026, between 9:30-10:00 AM.
Align your liquidity position to participate effectively in the ₹1.25 lakh crore auction.
Review the operational guidelines from the January 20, 2022 press release for bidding procedures.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks, Primary dealers, Liquidity managers at financial institutions), your first concrete step on “RBI Announces ₹1.25 Lakh Crore 2-Day VRR Auction on July 1” is: “Prepare bids for the VRR auction on July 1, 2026, between 9:30-10:00 AM.” (RBI issued this 01 Jul 2026).
Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63058 -- RBI Announces ₹1.25 Lakh Crore 2-Day VRR Auction on July 1
Issued: 01 Jul 2026
Action required: Prepare bids for the VRR auction on July 1, 2026, between 9:30-10:00 AM.
Action required: Align your liquidity position to participate effectively in the ₹1.25 lakh crore auction.
Action required: Review the operational guidelines from the January 20, 2022 press release for bidding procedures.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 30 Jun 2026, 19:26 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63058 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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