RBI Absorbs Net ₹2.03 Lakh Crore From Banking System Amid Steady Money Market Rates
The Reserve Bank of India (RBI) withdrew net liquidity amounting to ₹2,03,088.13 crore through its money market and liquidity adjustment facilities on November 2, 2026. The absorption highlights continued surplus cash conditions across the domestic banking system, prompting commercial banks to park excess funds with the central bank.
According to the RBI's money market operations release, total turnover in the overnight segment reached ₹7,81,658.23 crore, operating at an overall weighted average rate of 5.62 percent within an intraday range of 4.80 percent to 5.95 percent.
Segment-Wise Overnight Volumes and Yields
The triparty repo (TREPS) segment accounted for the bulk of the overnight market trading:
- Triparty Repo: Traded volume reached ₹5,70,314.05 crore at a weighted average rate of 5.61 percent.
- Market Repo: Recorded volumes of ₹1,91,394.22 crore with a weighted average rate of 5.67 percent.
- Call Money: Interbank call money transactions registered ₹13,431.31 crore at a weighted average rate of 5.50 percent.
- Corporate Bond Repo: Overnight repo transactions in corporate bonds clocked ₹6,518.65 crore at a weighted average rate of 5.81 percent.
In the term money segment, triparty repo logged ₹4,923.60 crore, term money recorded ₹1,247.48 crore, and corporate bond repo registered ₹1,080.46 crore at a weighted average rate of 6.85 percent, while notice money stood at ₹377 crore.
Liquidity Management and Banking Reserves
During the daily liquidity adjustment facility (LAF) window, commercial banks parked ₹1,90,671 crore under the Standing Deposit Facility (SDF) at 5.25 percent. Conversely, ₹2,831 crore was drawn through the Marginal Standing Facility (MSF) at 5.75 percent, generating a net daily liquidity withdrawal of ₹1,87,840 crore. Factoring in outstanding operations, net system liquidity absorption totaled ₹2,03,088.13 crore.
Commercial banks' cash balances with the central bank stood at ₹8,42,195.31 crore, remaining comfortably above the mandated average daily cash reserve requirement of ₹8,16,655 crore for the reporting fortnight.
Market Implications for Indian Investors
The liquidity absorption reflects healthy funding conditions across Indian scheduled commercial banks. The concentration of overnight rates between 5.50 percent and 5.67 percent indicates that money market borrowing rates remain well aligned with the policy corridor. For fixed-income markets, adequate cash buffers cushion short-term paper yields—such as commercial paper (CPs) and certificates of deposit (CDs)—from sudden liquidity shocks, maintaining benign working capital financing rates across corporate India.
