RBI absorbed over 2 lakh crore rupees in money market operations on November 6, 2026
The Reserve Bank of India reported that it absorbed a net 2,13,730.00 crore rupees from the banking system through its daily liquidity operations on November 6, 2026. Across both ongoing and daily facilities, net absorbed liquidity stood at 2,03,423.13 crore rupees. The central bank conducts these operations to manage the amount of cash circulating between commercial banks, which guides the interest rates banks charge one another for short-term borrowing. When the central bank absorbs money, banks hold less excess cash to trade, keeping market interest rates near official targets. Most of the absorbed money on November 6 went into the Standing Deposit Facility, where lenders deposited 2,01,856.00 crore rupees for one day at an interest rate of 5.25 per cent. While these wholesale transactions happen between financial institutions and the central bank, the resulting lending rates influence everyday borrowing costs for household loans, credit cards, and business credit.
What was announced
On November 9, 2026, the Reserve Bank of India published data showing money market activity and central bank liquidity operations conducted on November 6, 2026.
Commercial lenders placed large sums into central bank deposit tools. Banks parked 2,01,856.00 crore rupees in the one-day Standing Deposit Facility (SDF) at a rate of 5.25 per cent, alongside smaller multi-day deposits of 90.00 crore rupees for two days and 524.00 crore rupees for three days. The central bank also took in 18,133.00 crore rupees through a three-day variable rate reverse repo operation at 5.49 per cent.
Borrowing facilities saw limited use. Banks took 6,873.00 crore rupees through the Marginal Standing Facility at 5.75 per cent for one day, and availed 10,306.87 crore rupees under the Standing Liquidity Facility. Across all operations for the day, the Reserve Bank absorbed a net total of 2,13,730.00 crore rupees.
In private money markets, trading volumes reached 20,970.90 crore rupees in the overnight segment with a weighted average rate of 5.55 per cent. Term triparty repos recorded 5,40,462.10 crore rupees at 5.61 per cent. Scheduled commercial banks held 8,46,501.65 crore rupees in cash balances with the central bank, above their required average of 8,16,655.00 crore rupees for the fortnight ending November 15, 2026.
What it means
The operations show that Indian banks held substantial surplus cash on November 6. Instead of keeping that spare money idle or lending it at lower rates in private markets, lenders chose to deposit hundreds of thousands of crores back with the Reserve Bank of India.
Central banks use facilities like the Standing Deposit Facility to set an effective floor under market interest rates. By offering 5.25 per cent on deposits, the Reserve Bank prevented overnight borrowing rates from dropping well below its policy goals. Most overnight money market deals settled between 5.00 per cent and 5.74 per cent, remaining close to the central bank's standing rates.
What the announcement does not tell us
The document is a statistical report, so it does not state why cash levels remained elevated across the banking system. It does not provide forward guidance on upcoming rate decisions. Additionally, the release notes zero surplus cash balance for the Government of India on November 6, but it does not explain government expenditure or revenue flows behind 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) 20,970.90 5.55 5.00-7.50 I. Call Money 1,337.15 5.25 5.00-5.62 II. Triparty Repo 12,590.85 5.50 5.02-5.75 III. Market Repo 321.60 5.00 5.00-5.00 IV. Repo in Corporate Bond 6,721.30 5.74 5.60-7.50 B. Term Segment I. Notice Money ** 11,521.50 5.61 4.30-5.75 II. Term Money @@ 149.50 - 5.65-5.95 III. Triparty Repo 5,40,462.10 5.61 5.20-5.84 IV. Market Repo 1,95,715.86 5.62 4.50-6.10 V. Repo in Corporate Bond 0.00 - - RBI OPERATIONS @ --> RBI OPER
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More from Reserve Bank of India Press Releases
- Money Market Operations as on November 10, 202611 November 2026
- Money Market Operations as on November 09, 202611 November 2026
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