Document title: Money Market Operations as on August 29, 2026
Issuing authority: Reserve Bank of India
Reference number: Press Release 2026-2027/996
Date: August 31, 2026
Policy rates and liquidity
The RBI conducted Marginal Standing Facility (MSF) operations on 29 August 2026, extending 1‑day tenor facilities of ₹1,869.00 crore and 2‑day tenor facilities of ₹36.00 crore, both at a rate of 5.50%. Standing Deposit Facility (SDF) operations on the same day comprised a 1‑day tenor of ₹2,56,998.00 crore and a 2‑day tenor of ₹6,992.00 crore, each priced at 5.00%. Net liquidity injected from today’s operations amounted to a negative ₹2,62,085 crore, indicating net absorption. Outstanding reverse‑repo operations as of 28 August 2026 included a 3‑day tenor of ₹1,52,537.00 crore and a 7‑day tenor of ₹91,980.00 crore, both at 5.24%. Cumulatively, net liquidity injected from outstanding operations was –₹2,39,370.34 crore, and the total net liquidity position (including today’s operations) stood at –₹5,01,455.34 crore.
Banking and credit
Cash reserves of scheduled commercial banks increased marginally from ₹8,15,716.81 crore on 29 August to ₹8,17,404.00 crore on 31 August 2026, reflecting a modest rise in bank liquidity. The Government of India’s surplus cash balance available for auction was zero as of 28 August 2026. Net durable liquidity, representing the surplus after accounting for statutory requirements, was ₹6,79,145.00 crore on 31 July 2026.
Capital markets and flows
The overnight money‑market segment (inclusive of Call Money, Triparty Repo, Market Repo and Corporate Bond Repo) recorded a total volume of ₹11,384.73 crore, with a weighted average rate of 4.75% and a rate range of 4.00‑5.25%. Call Money contributed ₹1,590.40 crore at a rate of 4.95% (range 4.50‑5.15%). Triparty Repo accounted for ₹9,323.65 crore at 4.72% (range 4.00‑5.10%). Market Repo added ₹470.68 crore at 4.58% (range 4.15‑5.25%). No transactions were reported under Repo in Corporate Bonds, Notice Money, Term Money, or other term‑segment facilities.
Financial stability and inclusion
The aggregate net liquidity absorption of over ₹5 lakh crore across today’s and outstanding operations signals a tightening of liquidity conditions despite the presence of substantial cash reserves in the banking system. The reserve position data and the zero government surplus cash balance underscore the RBI’s calibrated approach to managing systemic liquidity.
Overall, the RBI’s money‑market operations on 29‑30 August 2026 demonstrate active liquidity management through MSF and SDF facilities, a sizable net absorption of liquidity, and stable cash‑reserve levels in scheduled commercial banks, reflecting a cautious stance amid prevailing market conditions.