Now Reading: RBI data shows liquidity surge as weekend shuts market
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RBI data shows liquidity surge as weekend shuts market
Overnight money market volumes dropped to zero on Sunday August 23 as banks did not trade, RBI data shows. The previous trading day on August 21 saw volumes of Rs 6.56 lakh…
Overnight money market volumes dropped to zero on Sunday August 23 as banks did not trade, RBI data shows. The previous trading day on August 21 saw volumes of Rs 6.56 lakh crore, and on Monday August 24 volumes rose to Rs 6.88 lakh crore.
The weighted average overnight rate fell from 5.05% on Friday to 5.01% on Monday. Banks used the Marginal Standing Facility for Rs 9,531 crore on Sunday and Rs 439 crore on Monday. The Standing Deposit Facility absorbed Rs 1.63 lakh crore on Sunday and Rs 1.6 lakh crore on Saturday.
On Monday, the RBI conducted a 1-day reverse repo for Rs 49,206 crore at 5.24% and a new 7-day reverse repo for Rs 91,980 crore at the same rate, maturing on August 31.
Indian Opinion Analysis
The four daily RBI reports show a sharp drop in overnight market volumes from Rs 6.56 lakh crore on August 21 to zero on August 23, when a Sunday shut the interbank market. On August 24 volumes rebounded to Rs 6.88 lakh crore. The weighted average rate eased from 5.05% to 5.01% across the period. Banks borrowed Rs 439 crore via the MSF on Monday, down from Rs 9,531 crore on Sunday, and placed Rs 1.63 lakh crore with the RBI's SDF on Sunday versus Rs 1.6 lakh crore on Saturday. The 1-day reverse repo operation on August 24 absorbed Rs 49,206 crore at 5.24%, while a new 7-day reverse repo auction for Rs 91,980 crore at the same rate suggests the RBI is managing liquidity beyond the weekend. All four reports are straight data releases with no editorial framing.
Coverage: 4 sources, 4 neutral
Sources (4): rbi.org.in (neutral report), rbi.org.in (2) (neutral report), rbi.org.in (3) (neutral report), rbi.org.in (4) (neutral report)
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
