RBI announces ₹5 lakh crore 26-day VRRR auction to absorb liquidity

The Reserve Bank of India will conduct a 26-day Variable Rate Reverse Repo auction for ₹5,00,000 crore on September 11, 2026, to absorb surplus liquidity. This is a routine liquidity management operation under the LAF framework, signaling the RBI's intent to manage durable surplus without altering the policy rate. The large notified amount suggests persistent excess liquidity in the banking system, which could keep short-term rates anchored near the reverse repo rate.