Money Market Liquidity Absorbed by RBI: Repo Rate Holds Steady as Overnight Transactions Cross 6.7 Lakh ₹ Crore Mark
The Reserve Bank of India (RBI) conducted key operations across various money markets on July 20, 2026. The data reveals a focused liquidity management effort, with the central bank absorbing significant net liquidity from both today's and outstanding operations. Overnight segment transactions peaked, underscoring active market participation while maintaining rates within established ranges.Overview of Money Market Operations
The overall money markets witnessed substantial activity in the overnight segment, totaling ₹ 6,70,648.83 crore. The Weighted Average Rate across all money markets stood at 5.26%, indicating a stable operational environment for short-term funds. The range observed during these operations was noted between 0.01% and 5.60%.The call money segment recorded transactions totaling ₹ 15,684.92 crore, operating at an average rate of 5.34%. Triparty Repo formed the largest portion of the overall overnight market with a volume of ₹ 4,69,428.30 crore, pegged at a weighted average rate of 5.25%.
Performance in Term Money Markets
In the term money segment, several operations were recorded, highlighting sustained institutional engagement. The Triparty Repo operation accounted for ₹ 2,807.00 crore, reflecting a steady market function with a rate of 5.29% (ranging from 5.25% to 5.40%).Market Repo transactions in the term segment were recorded at a volume of 95.76 crore, priced at 5.60%. This data point demonstrates the ongoing dynamic calibration of borrowing costs within longer-term instruments monitored by the RBI.
Central Bank Operations and Liquidity Management
The RBI actively managed liquidity through various facilities, including Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF), and Standing Deposit Facility (SDF). The LAF operation recorded a significant injection amount of ₹ 72,051.00 crore at a rate of 5.26% for a 7-day tenor, maturing on Monday, July 27, 2026.MSF operations were conducted utilizing a volume of ₹ 623.00 crore at 5.50%, with a maturity date set for Tuesday, July 21, 2026. Concurrently, the SDF operation managed ₹ 1,53,619.00 crore, maintaining a rate of 5.00%.
The RBI recorded a net absorption of ₹ 80,945.00 crore from today's operations alone. When combined with outstanding operations, the total net liquidity absorbed by the central bank stood at ₹ 69,596.18 crore for the period reflected.
Reserve Position and Market Reserves
Regarding reserve management, the cash balance position of scheduled commercial banks with RBI was noted at a robust ₹ 8,18,816.68 crore as of July 20, 2026. This figure is closely monitored against the average daily cash reserve requirement for the fortnight ending July 31, 2026, which was set at ₹ 8,15,720.00 crore.Furthermore, the Government of India Surplus Cash Balance reckoned for auction as on July 20, 2026, stood at ₹ 72,051.00 crore. The net durable liquidity across all recorded periods was documented at a surplus level of ₹ 4,99,485.00 crore as of June 30, 2026.
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