RBI Schedules ₹1 Lakh Crore Variable Rate Repo Auction for May 18
The Reserve Bank of India will conduct a 7-day Variable Rate Repo auction on May 18, 2026, to manage liquidity, with funds reversing on May 25, 2026. RBI to conduct 7 On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Monday, May 18, 2026, as under: Sl. No. Notified Amount (₹ crore) Tenor (day) Window Timing Date of Reversal 1 1,00,000 7.
The Reserve Bank of India has scheduled a Variable Rate Repo (VRR) auction for May 18, 2026, aiming to inject ₹1,00,000 crore into the banking system. The auction window is open from 09:30 AM to 10:00 AM. This measure uses a 7-day tenor, with the funds scheduled for reversal on May 25, 2026.
The auction follows the standard operational guidelines established by the RBI in its January 2022 press release. By utilizing the VRR mechanism, the central bank maintains precise control over short-term liquidity conditions, ensuring stability within the money market without requiring a shift in the standing repo rate.
| Parameter | Detail |
|---|---|
| Notified Amount | ₹1,00,000 crore |
| Auction Date | May 18, 2026 |
| Tenor | 7 days |
| Reversal Date | May 25, 2026 |
Glossary
Variable Rate Repo (VRR): A tool used by the RBI to inject liquidity into the banking system at interest rates determined through competitive bidding rather than a fixed rate.
Liquidity Adjustment Facility (LAF): A monetary policy instrument allowing banks to manage their daily liquidity requirements through repurchase agreements with the central bank.
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