RBI to conduct Rs 1 lakh cr VRRR auction on June 27 amid higher surplus liquidity

Reserve Bank of India

The Reserve Bank of India (RBI) on June 24 said that it will conduct Rs 1 lakh crore variable rate reverse repo (VRRR) auction on June 27.

“On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on Friday, June 27, 2025,” RBI said in a release.

The auction will take place between 10 AM and 10:30 AM on June 27. The reversal of these funds will take place on July 4.

The VRRR is announced when the liquidity in the banking system remains more than Rs 2 lakh crore in the banking system and higher surplus funds are being parked by the banks in RBI’s standing deposit facility (SDF).

Currently, liquidity in the banking system is in surplus of around Rs 2.44 lakh crore as on June 23, as per RBI’ data while banks have parked Rs 2.52 lakh crore in SDF.

The central bank also said that, on a review of evolving liquidity conditions, it has been decided not to conduct the 14-day main operation on Friday, June 27, 2025, for the ensuing fortnight.