The Reserve Bank of India (RBI) absorbed a net ₹114,614.95 crore on Oct. 19 even as it supplied ₹100,014 crore through a repo auction, reflecting flows in opposite directions through its money market facilities.
The RBI’s Oct. 21 release covering Oct. 19 activity put net absorption from operations conducted that day at ₹86,496 crore. Its broader total included outstanding transactions, among them ₹37,055 crore from an earlier reverse repo and ₹8,936.05 crore under the standing liquidity facility.
Placements in the standing deposit facility totaled ₹187,158 crore for one day and ₹2,920 crore for two days, both at 5.25%. Marginal standing facility borrowing reached ₹3,568 crore at 5.75%. The RBI did not identify the institutions using those facilities.
The seven-day repo auction drew ₹150,735 crore in bids against a ₹100,000 crore offer. The RBI allotted ₹100,014 crore, with a 5.51% cutoff rate and a 5.52% weighted average rate. The central bank said it held the auction after reviewing near-term liquidity conditions.
In the RBI’s calculation, repo and lending facilities add liquidity, while reverse repos and standing deposit facility placements absorb it. Those flows can occur on the same day, leaving the central bank with a net absorption figure even when it supplies funds through a repo auction.
One-leg overnight money market trading reached ₹700,613.28 crore at a weighted average rate of 5.56%. Triparty repo accounted for ₹503,521.05 crore, compared with ₹177,529.66 crore in market repo and ₹13,586.97 crore in call money.
Earlier EconoTimes coverage of RBI liquidity absorption described reverse-repo operations with Oct. 19 and Nov. 6 maturity dates. The RBI’s Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50% on Oct. 7.
The seven-day repo is due to reverse Oct. 26. The committee’s next scheduled monetary policy meeting is Dec. 2-4.
