RBI's money market operations report showed net liquidity absorption on July 14

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RBI's Money Market Report

Highlights

On July 14, RBI's money market operations saw net liquidity absorption of ₹158,876.00 crore and a total net liquidity position of negative ₹148,792.18 crore.
In the overnight segment, triparty repo stood at ₹442,650.85 crore, market repo at ₹178,336.51 crore, and call money at ₹22,662.51 crore, with an average rate of 5.13%.
Scheduled commercial banks' cash balances with RBI stood at ₹768,838.88 crore, while the average daily cash reserve requirement was recorded at ₹798,115.00 crore.

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Market Operations and RBI Data for July 14

According to RBI press release 2026-2027/670, the weighted average rate in the overnight segment was 5.13%, with the overall range recorded between 4.00% and 6.30%. In this segment, call money turnover was ₹22,662.51 crore, triparty repo ₹442,650.85 crore, market repo ₹178,336.51 crore, and repo in corporate bonds ₹7,611.85 crore.

In the term segment, notice money was recorded at ₹60.50 crore with a weighted average rate of 5.13%. Term money turnover was ₹267.00 crore in the range of 5.50% to 5.70%, while triparty repo stood at ₹6,871.50 crore and market repo at ₹469.76 crore.

Under liquidity adjustment facility, marginal standing facility, and standing deposit facility, in the one-day operations on July 14, ₹201.00 crore was provided through MSF at 5.50%. Meanwhile, ₹159,077.00 crore was absorbed under SDF at 5.00%, resulting in net liquidity absorption of ₹158,876.00 crore from the day's operations.

₹10,083.82 crore was utilized under the standing liquidity facility from RBI. Including outstanding operations, the total net liquidity position on July 14 was negative ₹148,792.18 crore.

Impact on Banking System and Rate Signals

This trend shows that a large share of short-term funding in the banking system remains concentrated in secured instruments like triparty and market repo. The relatively small size of call money also indicates a preference for collateralized borrowing over unsecured lending.

Scheduled commercial banks' cash balances with RBI stood at ₹768,838.88 crore on July 14, 2026, while the average daily cash reserve requirement for the fortnight ending July 15, 2026, was ₹798,115.00 crore. The government's surplus cash balance was recorded as zero for auction purposes, while net durable liquidity surplus as of June 15, 2026, was reported at ₹482,130.00 crore.

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