Reserve Bank of India Absorbs ₹1.98 Trillion from Money Market
The central bank's liquidity operations on 27 September included Marginal Standing Facility at 5.50% and Standing Deposit Facility at 5.00%.
Significant Liquidity Absorption
The Reserve Bank of India (RBI) absorbed a net ₹1,98,169.00 crore (approximately ₹1.98 trillion) from the money market on 27 September 2026. This significant withdrawal of funds occurred primarily through its Liquidity Adjustment Facility (LAF) operations, including the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF). The central bank's actions indicate a focused effort to manage system liquidity as the financial year progresses.
Sunday's Operations Detailed
On Sunday, 27 September, the RBI conducted a one-day MSF operation, drawing ₹10,288.00 crore from banks at an interest rate of 5.50%. Concurrently, the SDF operation absorbed a larger sum of ₹2,08,457.00 crore, also for one day, at a rate of 5.00%. Both facilities matured on 28 September 2026, contributing to the overall net liquidity absorption reported by the central bank.
Outstanding Reverse Repo Facilities
Beyond Sunday's immediate actions, the RBI maintained significant outstanding variable rate reverse repo operations. These included ₹90,280.00 crore at 5.24%, initiated on 25 September for a three-day tenor and maturing on 28 September. Another operation absorbed ₹39,449.00 crore at the same 5.24% rate, started on 11 September for 26 days and set to mature on 07 October 2026. These longer-term operations complement the central bank's daily liquidity management.
The substantial liquidity absorption by the RBI suggests a deliberate move to tighten short-term money market conditions. Notably, traditional overnight and term money market segments, including call money, triparty repo, and market repo, reported zero volume on 27 September.
This indicates that participants largely relied on the RBI's facilities for their short-term funding needs, reinforcing the central bank's direct influence on interbank rates. Companies should monitor these liquidity trends as they can affect borrowing costs.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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