The Reserve Bank of India (RBI) released its money market operations data for July 4, 2026. The report shows overnight segment activity totalling ₹13,837.39 crore, with a weighted average rate of 4.88 per cent. Therefore, short-term borrowing costs remained stable across key market segments.
Key Details of Money Market Activity
The overnight segment drove most of the day’s volume. Triparty Repo led with ₹11,764.90 crore at a weighted average rate of 4.88 per cent. Meanwhile, Call Money recorded ₹744.55 crore, and Market Repo contributed ₹1,327.94 crore at 4.84 per cent. Additionally, Repo in Corporate Bonds saw no transactions on this date.
The term segment recorded minimal activity. Notice Money reported just ₹3.35 crore at 4.85 per cent. However, Term Money, Triparty Repo, Market Repo, and Corporate Bond Repo in the term segment all recorded zero volume.
RBI Liquidity Operations and Reserve Position
On the liquidity front, the RBI conducted Marginal Standing Facility (MSF) operations worth ₹23 crore at 5.50 per cent. As a result, the central bank absorbed significant funds through the Standing Deposit Facility (SDF). Total SDF absorption for the day reached ₹1,79,606 crore at 5.00 per cent across one-day and two-day tenors.
Net liquidity injected from today’s money market operations stood at a net absorption of ₹1,79,583 crore. Furthermore, including outstanding operations, the RBI absorbed a net ₹1,70,007.18 crore overall. This reflects the central bank’s active stance in managing surplus liquidity in the banking system.
Scheduled commercial banks held cash balances of ₹8,07,768.39 crore with the RBI as on July 4, 2026. The average daily cash reserve requirement for the fortnight ending July 15, 2026 stood at ₹7,98,115 crore. Additionally, net durable liquidity as on June 15, 2026 recorded a surplus of ₹4,82,130 crore. The Government of India’s surplus cash balance reckoned for auction as on July 3, 2026 was nil.
What This Means for Banking Liquidity
The data confirms that the RBI continues to absorb excess liquidity from the system. However, banks retain comfortable cash buffers well above reserve requirements. For example, the gap between actual cash balances and required reserves remains positive. Therefore, the Indian banking system continues to operate with adequate short-term liquidity support.
Source: RBI Press Releases
