RBI's money market operations report showed a net liquidity withdrawal of Rs 1.15 lakh crore on October 19

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Highlights

Total money market volume stood at Rs 700,613.28 crore on October 19, 2026, with the highest trading in the overnight segment and an average rate of 5.56%.
On the same day, the RBI injected Rs 100,014.00 crore through a 7-day VRR auction at a 5.51% cut-off rate and absorbed Rs 187,158.00 crore under the SDF.
Including outstanding operations, net liquidity withdrawal stood at Rs 114,614.95 crore, while scheduled commercial banks' cash balances with the RBI were recorded at Rs 843,531.91 crore.

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

October 19 operations and market rates

According to RBI press release 2026-2027/1356, money market operations data released for October 19, 2026 recorded total overnight segment volume of Rs 700,613.28 crore, including call money, triparty repo, market repo and corporate bond repo. The weighted average rate in this segment stood at 5.56%, while the rate range was between 4.85% and 6.00%.

Triparty repo accounted for the largest volume in the overnight segment at Rs 503,521.05 crore, at an average rate of 5.54%. Market repo turnover was Rs 177,529.66 crore at an average rate of 5.62%, while call money turnover was Rs 13,586.97 crore and corporate bond repo turnover was Rs 5,975.60 crore.

In the term segment, notice money stood at Rs 2,767.44 crore, term money at Rs 966.00 crore, triparty repo at Rs 1,782.75 crore, market repo at Rs 440.66 crore and corporate bond repo at Rs 40.00 crore. Among these, corporate bond repo had the highest weighted average rate among the listed segments, at 6.35%.

Liquidity conditions and impact on the banking system

On the same day, the RBI injected Rs 100,014.00 crore under a 7-day variable rate repo auction at a cut-off rate of 5.51%. In addition, Rs 3,520.00 crore and Rs 48.00 crore were borrowed under the MSF for 1-day and 2-day tenors, respectively, at 5.75%, while Rs 187,158.00 crore and Rs 2,920.00 crore were absorbed under the SDF at 5.25%.

Based on these daily operations, net liquidity withdrawal for the day stood at Rs 86,496.00 crore. Including outstanding operations, net liquidity withdrawal amounted to Rs 114,614.95 crore, while utilisation of Rs 8,936.05 crore under the Standing Liquidity Facility was recorded from the RBI.

Scheduled commercial banks' cash balances with the RBI stood at Rs 843,531.91 crore on October 19, 2026. The average daily cash reserve ratio requirement for the fortnight ending October 31, 2026 was recorded at Rs 833,309.00 crore, while the Government of India's surplus cash balance considered for auction stood at Rs 100,014.00 crore.

Our previous report discussed a possible repo rate hike at the RBI's October Monetary Policy Committee (MPC) meeting, where retail inflation remaining above the 4% target, crude oil above $100 per barrel and pressure on the rupee were cited as key factors. The report also highlighted that markets would monitor not only the rate decision but also signals of further policy tightening and its impact on borrowing costs, bank lending rates and demand.

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