FirsthandMoney
Reserve Bank of India Press ReleasesIndia6 November 2026

Reserve Bank of India Absorbs ₹1.81 Lakh Crore in Daily Liquidity Operations

The Reserve Bank of India reported that it absorbed a net amount of ₹1,81,410.00 crore from the banking system through its daily liquidity operations on November 5, 2026. The central bank regularly manages system liquidity, which is the pool of readily available cash circulating among financial institutions, to help keep short-term interest rates stable. Most of this daily cash absorption occurred through the Standing Deposit Facility, where commercial banks deposited ₹1,77,942.00 crore at an interest rate of 5.25 per cent. At the same time, overnight interbank and market repo trading reached ₹7,89,757.11 crore with a weighted average rate of 5.55 per cent. For ordinary citizens, these figures show whether lenders hold excess funds or face funding shortages. When commercial banks maintain high surplus cash balances, short-term money costs tend to remain stable, avoiding sudden swings that might eventually filter down into broader consumer loan and deposit rates.

What was announced

The Reserve Bank of India issued its daily money market bulletin on November 6, 2026, recording transactions conducted on November 5, 2026. Total turnover in the overnight money market reached ₹7,89,757.11 crore with a weighted average rate of 5.55 per cent across four segments:

  • Triparty repo, where institutions borrow against government securities via an intermediary, reached ₹5,72,289.15 crore at 5.53 per cent.
  • Market repo accounted for ₹1,95,543.41 crore at 5.61 per cent.
  • Call money, which consists of uncollateralised loans between banks, totalled ₹14,431.90 crore at 5.63 per cent.
  • Repos in corporate bonds recorded ₹7,492.65 crore at 5.71 per cent.

In its direct operations, the Reserve Bank absorbed a net ₹1,81,410.00 crore from lenders during the day. Financial institutions placed ₹1,77,942.00 crore into the overnight Standing Deposit Facility at 5.25 per cent, while a 1-day variable rate reverse repo took in ₹7,767.00 crore at 5.49 per cent. Lenders also drew ₹4,299.00 crore from the Marginal Standing Facility at 5.75 per cent. Factoring in existing multi-day facilities, total net absorption stood at ₹1,96,658.13 crore.

What it means

Money markets allow banks, mutual funds, and primary dealers to borrow or park cash for short terms, usually overnight. The rates established in these markets reflect how easily lenders can meet their daily cash needs.

Commercial banks held cash balances of ₹8,45,116.17 crore with the central bank on November 5. This sum stood well above their average daily cash reserve requirement of ₹8,16,655.00 crore for the fortnight ending November 15, 2026. Because the banking network held ample spare cash, institutions deposited surplus balances with the central bank rather than bidding up interest rates in the open market. The overall overnight weighted rate of 5.55 per cent remained firmly within the band between the 5.25 per cent deposit floor and the 5.75 per cent emergency borrowing ceiling.

What the announcement does not tell us

This statistical release contains figures but no policy explanations. It does not state why certain institutions borrowed ₹4,299.00 crore through the Marginal Standing Facility at 5.75 per cent on the same day other institutions parked over ₹1.77 lakh crore at lower rates.

Individual participant identities remain undisclosed, meaning the table does not identify which institutions supplied or required cash. Finally, the release offers no forecast for upcoming liquidity actions or official policy interest rate decisions.

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) 7,89,757.11 5.55 3.50-5.85 I. Call Money 14,431.90 5.63 4.30-5.75 II. Triparty Repo 5,72,289.15 5.53 5.00-5.70 III. Market Repo 1,95,543.41 5.61 3.50-5.80 IV. Repo in Corporate Bond 7,492.65 5.71 5.55-5.85 B. Term Segment I. Notice Money ** 220.90 5.56 5.10-5.70 II. Term Money @@ 819.00 - 5.90-8.05 III. Triparty Repo 7,319.00 5.51 5.35-5.80 IV. Market Repo 1,289.01 5.96 3.50-6.20 V. Repo in Corporate Bond 168.20 7.50 7.50-7.50 RBI OPERATIONS
Source: Reserve Bank of India Press Releases
Read the official announcement

Opens www.rbi.org.in

More from Reserve Bank of India Press Releases

This content is for informational purposes only and is not financial, investment, tax, or legal advice. Rates, fees, and terms change and may differ from what is shown here; verify current details with the provider before acting. Consider consulting a qualified financial professional about your specific situation.