Reserve Bank of India Reports Net Liquidity Absorption of Over ₹1.96 Lakh Crore on November 1, 2026
The Reserve Bank of India published details of its money market operations for November 1, 2026. The central bank absorbed a net total of ₹1,96,397.13 crore from the banking system across both daily and outstanding liquidity operations. Today's primary activity included ₹2,05,869.00 crore deposited by commercial banks under the Standing Deposit Facility at a rate of 5.25 percent, alongside ₹23,427.00 crore borrowed via the Marginal Standing Facility at 5.75 percent. Scheduled commercial banks held ₹8,42,092.66 crore in cash balances with the central bank on November 1, exceeding their average daily reserve requirement of ₹8,16,655.00 crore set for the fortnight ending November 15, 2026. These figures matter to regular readers because central bank liquidity operations influence how much cash commercial banks hold, which affects short-term money market rates and banking system stability. Deputy General Manager Ajit Prasad released the report on November 2, 2026.
What was announced
The Reserve Bank of India released data detailing money market and liquidity operations conducted on November 1, 2026. The central bank absorbed ₹1,82,442.00 crore from the financial system through its daily operations. Commercial banks parked ₹2,05,869.00 crore in the Standing Deposit Facility at a cut-off rate of 5.25 percent. At the same time, banks drew ₹23,427.00 crore from the Marginal Standing Facility at 5.75 percent.
Outstanding operations added further net absorption of ₹13,955.13 crore. Combined with daily actions, total net liquidity absorbed by the central bank stood at ₹1,96,397.13 crore. Commercial banks maintained cash balances of ₹8,42,092.66 crore with the Reserve Bank of India on November 1, 2026, compared to a required daily average of ₹8,16,655.00 crore for the fortnight ending November 15, 2026. In addition, net durable liquidity showed a surplus of ₹7,93,409.00 crore as of October 15, 2026.
What it means
Commercial banks hold more cash than their minimum regulatory requirement. By using the Standing Deposit Facility, banks placed excess short-term money with the central bank to earn interest at 5.25 percent. Other lenders accessed the Marginal Standing Facility at 5.75 percent to meet immediate borrowing needs.
The central bank tracks these movements to maintain balance in short-term interest rates and manage cash flow within the commercial banking system. The overall net negative figure indicates that more funds were taken out of circulation than injected during this period, leaving the banking system with controlled cash reserves.
What the announcement does not tell us
The release does not explain why individual banks chose to deposit or borrow money on November 1, 2026. It also does not state whether commercial borrowing rates for retail consumers or businesses will change as a result of these daily operations. Furthermore, the report lists zero government surplus balance as of October 30, 2026, but does not provide reasons for that figure.
How this was written
This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is Reserve Bank of India Press Releases’s own. Always check the original before acting on anything here.
(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS @ --> Money Markets @ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV) 0.00 - - I. Call Money 0.00 - - II. Triparty Repo 0.00 - - III. Market Repo 0.00 - - IV. Repo in Corporate Bond 0.00 - - B. Term Segment I. Notice Money ** 0.00 - - II. Term Money @@ 0.00 - - III. Triparty Repo 0.00 - - IV. Market Repo 0.00 - - V. Repo in Corporate Bond 0.00 - - RBI OPERATIONS @ --> RBI OPERATIONS @ --> RBI Operations @ Auction Date Tenor (Days) Maturity Date Amount Current Rate / Cut off Rate C. Liquidity Adjustment Facility
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