RBI conducts second 90-day VRR auction, ₹2 lakh crore on offer

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Last Updated: 1st February 2026 - 11:07 am

Summary:

The Reserve Bank of India will conduct a second 90-day variable rate repo auction of ₹2 lakh crore on January 30, according to a regulatory release. The move comes amid surplus liquidity in the banking system. The auction is part of the central bank’s liquidity management operations ahead of the financial year-end.
 

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The Reserve Bank of India said it will conduct a second 90-day variable rate repo auction of ₹2 lakh crore between 1 pm and 1.30 pm on January 30.

The auction follows an earlier VRR operation conducted the same day, in which the central bank accepted bids worth ₹25,004 crore.

Liquidity conditions

According to the central bank, liquidity in the banking system currently remains in surplus at ₹82,967.95 crore.
The VRR auctions form part of the RBI’s broader liquidity management measures aimed at addressing evolving system liquidity conditions ahead of the end of the financial year.

Prepayment provisions

Participants in the auction will have the option to prepay the amount borrowed. Prepayment requests can be submitted only through the Ekuber portal between 9 am and 5 pm on working days in Mumbai.

Such requests must be placed at least two days before the original date of reversal. Partial prepayment will not be permitted, the RBI said.

Settlement process

Once a prepayment request is submitted on the Ekuber portal, participants must inform the Financial Markets Operations Department via email.

The settlement of prepayment will take place at the start of the next working day following the submission of the request. On the date of repayment, the participant’s current account with the Reserve Bank will be debited for the principal amount along with accrued interest for the borrowing period.

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