RBI's money market activities on June 4 indicate liquidity absorption

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RBI's money market activities

Highlights

On June 4, 2026, in the overnight money market, triparty repo stood at ₹4,76,270.75 crore and call money at ₹18,288.69 crore.
The net liquidity absorption from the day's RBI operations stood at ₹2,26,924 crore, while the total liquidity absorption was ₹1,88,770.03 crore.
The cash reserve position of scheduled commercial banks was recorded at around ₹7,89,823.50 crore, close to the average daily requirement of ₹7,90,713 crore.

This article was translated from the original. Read the original version by our correspondent here.

Market and RBI Operational Status on June 4

According to press release 2026-2027/384 from the Reserve Bank of India, the overnight segment continued to hold the largest share in money market activities on June 4, 2026. Within this segment, call money stood at ₹18,288.69 crore, triparty repo at ₹4,76,270.75 crore, market repo at ₹1,92,915.96 crore, and repo in corporate bonds at ₹6,379.50 crore.

The weighted average rate for the overnight segment was 5.06 percent, with call money at 5.27 percent, triparty repo at 5.04 percent, market repo at 5.07 percent, and repo in corporate bonds at 5.25 percent. In the term segment, notice money was ₹96 crore, term money ₹1,073.80 crore, triparty repo ₹7,180 crore, and market repo ₹819.20 crore.

On the same day, RBI’s operational activities recorded ₹838 crore under MSF at 5.50 percent and ₹2,27,762 crore under SDF at 5.00 percent. Net liquidity absorption from the day’s operations was ₹2,26,924 crore, while the outstanding repo operation amounts for June 3 and June 2 combined were ₹28,805 crore, and SLF usage was ₹9,348.97 crore.

Indicators for the Banking System and Rates

Including outstanding operations, net liquidity flow showed an injection of ₹38,153.97 crore, but total net liquidity, including the day’s activities, remained at an absorption of ₹1,88,770.03 crore. This indicates that the use of RBI’s deposit facility in the short-term funding market remains at a high level.

On June 4, 2026, scheduled commercial banks’ cash reserve position with RBI was ₹7,89,823.50 crore, close to the average daily cash reserve requirement of ₹7,90,713 crore for the fortnight ending June 15, 2026. On June 4, 2026, the Government of India’s surplus cash balance was recorded as zero, while the net durable liquidity surplus as of May 15, 2026, was shown at ₹2,65,955 crore.

Our previous update highlighted the June monetary policy review of RBI, where investors were focused on the central bank’s signals regarding policy rates, inflation, growth, and liquidity. That article discussed policy decisions and the potential market impact of GDP data amid rising crude oil prices, rupee weakness, and monsoon-related concerns.

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