Overnight and Term Money Markets See Significant Activity as RBI Manages Liquidity Absorption
The Reserve Bank of India (RBI) released detailed data regarding its Money Market Operations (MMO) for July 02, 2026. The operations underscore active management of liquidity across both the overnight and term segments, with the central bank maintaining close watch over the net injection status in the financial system.Activity in Overnight and Term Money Markets
The total volume recorded in the overnight segment reached ₹6,77,082.16 Crore. This activity was conducted within a wide rate range of 0.01% to 5.98%, with the weighted average rate standing at 5.11%.Within the Call Money market, transactions totaled ₹16,996.11 Crore, exhibiting a tight spread between 4.20% and 5.35%. Meanwhile, Triparty Repo accounted for a substantial volume of 4,77,507.90 Crore, maintaining an average rate of 5.10%, against a range of 4.86% to 5.20%.
In the Term segment, liquidity operations featured various activities including Notice Money and different types of Repo. Triparty Repo saw activity amounting to 3,138.00 Crore, trading within the range of 5.10% to 5.25%.
RBI Operations and Liquidity Absorption
Central bank operations revealed several key interventions intended to manage market stability. Today's operations resulted in a net liquidity absorption of ₹1,40,526.00 Crore. This measure reflects the balance of different facilities utilized by commercial banks on that day.Specifically, the Marginal Standing Facility (MSF) was operated at a rate of 5.50%, with an amount standing at 93.00 crore. The Standing Deposit Facility (SDF) saw transactions involving 1,40,619.00 Crore, rated at 5.00%.
Looking across both today's and outstanding operations, the overall trend indicated a continued absorption of liquidity. Net liquidity absorbed from all operations recorded at ₹99,472.18 Crore.
Bank Reserve Positions and Market Posture
The data provided transparency into the reserve positions held by scheduled commercial banks as on July 02, 2026. Cash reserves maintained with the RBI stood at a considerable amount of 8,64,285.90 crore. This figure was compared against an average daily cash reserve requirement for the fortnight ending July 15, 2026, which was 7,98,115.00 crore.The net durable liquidity position as of June 15, 2026, showed a surplus of ₹4,82,130.00 Crore. This aggregate data highlights the comprehensive management of systemic liquidity across both short-term and long-term financial instruments by the central bank.
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