Cash Reserves

Indian money markets continue to exhibit significant liquidity absorption, driven by Reserve Bank of India (RBI) operations. Recent data reveals consistent net liquidity deficits, ranging from ₹6,04,964 crore to ₹3,42,425 crore, with several days reporting zero transaction volumes across overnight and term segments. While the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates remain unchanged at 5.00% and 5.50% respectively, the persistent liquidity drain suggests a tightening monetary policy stance, potentially impacting short-term borrowing costs and overall market liquidity conditions.