Reserve Bank of India to carry out Rs 1 lakh crore three-day VRR auction on May 22
The Reserve Bank of India (RBI) said that it will carry out a three-day variable rate repo (VRR) auction for a notified amount of Rs 1 lakh crore on May 22, 2026. The RBI said the auction is scheduled from 9:30 AM to 10 AM, and the reversal of these funds will take place on May 25.
It stated ‘On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Friday, May 22, 2026.’ Liquidity surplus in the banking system has narrowed in the last few days, especially after the goods and services tax outflows. This has led to an uptick in the overnight money market rates.
According to RBI data, as of May 20, liquidity in the banking system is estimated at around Rs 1.29 lakh crore, down sharply from Rs 2.58 lakh crore on April 30. With an aim to provide liquidity to the banking system and arrest rising overnight money market instrument rates, the RBI has conducted five VRR auctions in the month of May so far, and one on April 30. However, it received a muted response from the participants despite the narrowing of surplus systemic liquidity.
