RBI Money Market Ops: Liquidity Absorption of ₹1.66 Lakh Cr

The RBI's liquidity management operations on June 12 reveal a complex picture of system dynamics. In the overnight segment, triparty repo at ₹4.90 lakh crore was the primary liquidity channel, trading at 5.14% WAR, only 14 basis points above the 5.00% reverse repo rate. This narrow spread indicates banks had adequate surplus liquidity from deposits and other sources. Market repo operations added another ₹1.74 lakh crore at 5.16% WAR with a range of 3.50-5.40%, showing some volatility in intraday pricing. Call money, which represents uncollateralised lending between banks and non-banks, was notably subdued at ₹14,967 crore at 5.27% WAR. The term segment remained dormant with only ₹7,629 crore traded across notice and term money, reflecting seasonal patterns where mid-June typically sees lower term funding needs due to fortnight-end cash flows. The RBI's Standing Liquidity Facility, availed by banks for emergency liquidity, recorded ₹10,505 crore, indicating some pockets of tightness despite overall system surplus. The net liquidity absorption of ₹1.65 lakh crore through MSF, SDF, and SLF operations suggests the central bank was actively draining funds to maintain its policy transmission at the reverse repo rate of 5.00%, preventing excess liquidity from pushing rates below the policy corridor.