DBT Bureau
Pune, 28 Nov 2025
The Reserve Bank of India (RBI) has announced that it will conduct a 4-day Variable Rate Reverse Repo (VRRR) auction on December 1, 2025 to manage liquidity in the banking system.
The decision comes after a review of the current and changing liquidity conditions in the market. The auction will allow banks to park their excess funds with the RBI at a market-determined interest rate.
According to the RBI, the details of the auction are as follows:
- Amount: ₹75,000 crore
- Tenor: 4 days
- Auction window: 9:30 AM to 10:00 AM on December 1, 2025
- Reversal date: December 5, 2025 (Friday)
The VRRR auction is part of the RBI’s liquidity management framework under the Liquidity Adjustment Facility (LAF), which helps maintain stability in the financial system.
