Net liquidity absorption recorded in RBI's money market operations on June 18

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Highlights

On June 18, the total volume in the overnight money market was ₹6,66,232.85 crore, while the weighted average rate was 5.09 percent.
RBI parked ₹1,91,670 crore at 5.00 percent in a one-day SDF auction and took ₹28 crore at 5.50 percent under MSF.
Today, including today's and outstanding operations, there was a net absorption of liquidity amounting to ₹19,163.11 crore, resulting in a cash balance of ₹8,12,360.40 crore.

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Market Operations and Rates on June 18

According to RBI’s press release 2026-2027/490, the total volume in the overnight segment—including call money, triparty repo, market repo, and repo in corporate bonds—was ₹6,66,232.85 crore. The weighted average rate in this segment was 5.09 percent, with a range from 4.00 percent to 5.50 percent.

In call money, transactions amounted to ₹18,500.97 crore at a weighted average rate of 5.33 percent. Triparty repo recorded ₹4,87,821.15 crore, market repo ₹1,53,230.78 crore, and repo in corporate bonds ₹6,679.95 crore, with weighted average rates of 5.04 percent, 5.18 percent, and 5.36 percent, respectively.

In the term segment, notice money volume was ₹713.10 crore with a weighted average rate of 5.73 percent. Term money transactions totaled ₹296 crore in the range of 5.55 percent to 6.60 percent, while triparty repo was ₹5,290 crore and market repo ₹445.24 crore.

Liquidity Position and Impact on the Banking System

In today’s RBI operations, ₹1,91,670 crore was parked under the one-day SDF auction at 5.00 percent, while ₹28 crore was borrowed under MSF at 5.50 percent. This shows a net liquidity absorption of ₹1,91,642 crore from today’s operations.

Outstanding operations included ₹50,016 crore, ₹22,284 crore, and ₹89,440 crore pending under variable rate repo auctions of June 17 and June 16, respectively. Under the Standing Liquidity Facility, ₹10,738.89 crore was also availed from RBI, resulting in a net liquidity injection of ₹1,72,478.89 crore from outstanding operations.

Combining today’s and outstanding operations, net liquidity absorption stood at ₹19,163.11 crore. As of June 18, 2026, scheduled commercial banks’ cash balances with RBI were ₹8,12,360.40 crore, which is above the average daily cash reserve requirement of ₹8,01,069 crore for the fortnight ending June 30, 2026.

Our previous report discussed a 0.52% decline in USD/INR and the pair remaining below the MA-20 and MA-50 but above the MA-200. That analysis, based on technical indicators, indicated the possibility of a rebound from the oversold zone with short-term pressure, while the ₹93.86–₹94.88 range and ₹94.88 resistance emerged as key levels.

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