# RBI conducts twin VRRR auctions, absorbs over Rs 1.98 lakh crore 2026-08-14T17:17:08+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Reserve Bank of India (RBI) conducted two Variable Rate Reverse Repo (VRRR) auctions under the Liquidity Adjustment Facility (LAF) on August 17, 2026, absorbing a total of Rs 1,98,945 crore from the banking system. The first auction, a 7-day tenor, saw a notified amount of Rs 2,00,000 crore, with the central bank accepting all 98,945 crore of bids received at a cut-off rate of 5.24 per cent. The sum will be reversed on August 24, 2026. A second overnight VRRR auction, with a notified amount of Rs 1,00,000 crore, was conducted later the same day. This auction is set to reverse on August 18, 2026. The RBI said it decided on the auctions after a review of current and evolving liquidity conditions. The operational guidelines remain the same as those issued in February 2020. ## Coverage - rbi.org.in - rbi.org.in - rbi.org.in Tags: LAF, RBI, reverse repo Canonical: https://indianopinion.org/rbi-to-absorb-rs-2-lakh-crore-via-7-day-vrrr-auction-on-august-17/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rbi-to-absorb-rs-2-lakh-crore-via-7-day-vrrr-auction-on-august-17/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.