Now Reading: RBI absorbs Rs 1.30 lakh crore through reverse repo
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RBI absorbs Rs 1.30 lakh crore through reverse repo
The Reserve Bank of India absorbed Rs 1,30,286 crore through a four-day variable-rate reverse repo operation on August 6, 2026, at a cut-off rate of 5.24%. Banks placed another Rs 2,45,409 crore…
The Story in Brief
The Reserve Bank of India absorbed Rs 1,30,286 crore through a four-day variable-rate reverse repo operation on August 6, 2026, at a cut-off rate of 5.24%. Banks placed another Rs 2,45,409 crore with the RBI overnight through the Standing Deposit Facility at 5%.
The RBI also provided Rs 3,686 crore through the Marginal Standing Facility at 5.50% for one day. Overnight money-market transactions totalled Rs 6,20,014.47 crore, with a weighted average rate of 5.04%. Triparty repo accounted for Rs 4,20,159.15 crore, while market repo recorded Rs 1,79,257.28 crore.
The Indian Opinion
The figures do not support sweeping claims that banks faced either a cash glut or a funding crunch. Banks parked large sums with the RBI, yet some drew overnight funds through the MSF. That points to uneven liquidity needs across institutions, not a single market-wide story. The useful test is whether overnight rates stay near the RBI’s operating corridor and whether MSF borrowing rises beyond this Rs 3,686 crore reading.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
