RBI's money market operations saw a net liquidity withdrawal of ₹1.65 lakh crore on June 12

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RBI's liquidity withdrawal

Highlights

On 12 June 2026, RBI recorded an average rate of 5.15% on a total volume of ₹6,85,828.90 crore in the money market.
In today's operations, there was a net liquidity withdrawal of ₹1,76,046.00 crore under the Liquidity Adjustment Facility, Marginal Standing Facility, and Standing Deposit Facility.
After all operations, on June 12, RBI's net liquidity position stood at a negative ₹1,65,541.21 crore, indicating liquidity pressure in the system.

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

Market Operations and Rates on June 12

According to the Reserve Bank of India (RBI) press release 2026-2027/451, on June 12, 2026, the total volume in the overnight segment stood at ₹6,85,828.90 crore, with a weighted average rate of 5.15 percent. Within this segment, call money was ₹14,966.55 crore, triparty repo ₹4,90,422.15 crore, market repo ₹1,73,690.90 crore, and repo in corporate bonds ₹6,749.30 crore.

In the term segment, notice money showed an average rate of 5.32 percent at ₹1,308.00 crore, while term money traded in the range of 6.00 to 6.20 percent within ₹368.50 crore. Triparty repo recorded an average rate of 5.37 percent at ₹5,755.00 crore, and market repo an average rate of 5.58 percent at ₹1,197.93 crore, while there were no transactions in repo in corporate bonds.

Liquidity Absorption and Impact on the Banking System

On the same day, RBI’s operations under the liquidity adjustment facility, marginal standing facility, and standing deposit facility resulted in a net liquidity withdrawal of ₹1,76,046.00 crore. Under MSF, a total of ₹2,419.00 crore was recorded at 5.50 percent for maturities of 1 day, 2 days, and 3 days, while under SDF, ₹1,78,465.00 crore was absorbed at 5.00 percent.

Outstanding operations resulted in a net liquidity inflow of ₹10,504.79 crore, including the use of the standing liquidity facility. Including today’s operations, the total net liquidity stood at a negative ₹1,65,541.21 crore. As of June 12, 2026, scheduled commercial banks’ cash balances with RBI were ₹7,73,041.22 crore, while the average daily cash reserve requirement for the fortnight ending June 15, 2026, was ₹7,90,713.00 crore.

Our previous report discussed the steps taken by the government and RBI to attract foreign capital, including tax exemptions on government bonds for FPIs, expansion of the Fully Accessible Route, and measures such as FCNR(B)/forex swaps. That article explained that these steps are expected to reduce pressure on the balance of payments, support banking funding, and somewhat ease the pressure on the rupee.

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