RBI's money market operations saw increased net liquidity absorption on June 5

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Highlights

On 5 June 2026, the total one-sided overnight volume in RBI's money market operations was ₹15,874.22 crore, with weighted average rates ranging from 4.50% to 5.33%.
On June 5, a total of ₹2,600 crore was provided at 5.50 percent under the MSF, while a total of ₹1,97,766 crore was absorbed at 5.00 percent through the SDF.
After the day's operations, net liquidity absorption stood at ₹1,95,166 crore and the total net liquidity position was at an absorption of ₹1,85,817.03 crore.

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

Details of Operations and Rates on June 5

As per a press release from Reserve Bank of India, numbered 2026-2027/403, the money market operations on June 5, 2026, recorded a total one-sided overnight segment volume of ₹15,874.22 crore and a weighted average rate of 5.14 percent. In this segment, call money was ₹904.25 crore at 4.91 percent, triparty repo ₹7,154.40 crore at 4.99 percent, market repo ₹146.07 crore at 4.50 percent, and corporate bond repo ₹7,669.50 crore at 5.33 percent.

In the term segment, notice money volume stood at ₹17,796.98 crore at 5.31 percent, while term money ranged within ₹890 crore at rates between 5.40 percent and 6.20 percent. Triparty repo reached ₹5,29,767.85 crore and market repo ₹1,89,458.46 crore, with weighted average rates of 5.18 percent and 5.14 percent, respectively.

Impact of Liquidity on the Banking System

On June 5, under the day’s RBI operations, ₹2,100 crore, ₹0, and ₹500 crore were made available under MSF for 1-day, 2-day, and 3-day tenors, respectively, at 5.50 percent. In comparison, under SDF, ₹1,81,980 crore, ₹110 crore, and ₹15,676 crore were absorbed for 1-day, 2-day, and 3-day tenors, respectively, at 5.00 percent.

Based on these actions, net liquidity absorption from the day’s operations stood at ₹1,95,166 crore. Despite a net liquidity inflow of ₹9,348.97 crore from outstanding operations, the total net liquidity position, including the day’s operations, remained at an absorption of ₹1,85,817.03 crore.

As of June 5, 2026, the cash balance of scheduled commercial banks with the RBI was recorded at ₹8,09,974.42 crore. For the fortnight ending June 15, 2026, the average daily cash reserve ratio requirement stood at ₹7,90,713 crore, while as of May 15, 2026, the net durable liquidity surplus was recorded at ₹2,65,955 crore.

In our earlier update regarding the June monetary policy review of the RBI, it was mentioned that amid concerns over crude oil prices, rupee weakness, and the monsoon, the market was awaiting the central bank’s signals on policy rates, inflation, growth, and liquidity. The article also highlighted that the latest GDP figures and policy statements together could play a crucial role in determining the near-term direction of the bond, currency, and equity markets.

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