The Reserve Bank of India (RBI) reported a higher overnight weighted average rate on Nov. 4 as turnover fell from the previous session, while its operations recorded ₹193,258.13 crore in net liquidity absorption.
Its Nov. 5 release put overnight transactions at ₹730,737.34 crore on a one-leg basis. The RBI’s Nov. 3 and Nov. 4 releases show turnover fell by ₹24,268.80 crore from ₹755,006.14 crore, while the weighted average rate rose from 5.44% to 5.53%.
Same-day operations accounted for ₹178,010 crore of net absorption, while outstanding operations accounted for ₹15,248.13 crore. The RBI calculates net liquidity by adding repo, the Marginal Standing Facility (MSF) and the Standing Liquidity Facility (SLF), then subtracting reverse repo and the Standing Deposit Facility (SDF). The same-day operations table listed ₹136,676 crore under SDF and ₹9,861 crore under MSF.
Triparty repo made up ₹506,732.15 crore of overnight trading at a weighted average rate of 5.54%. Market repo totaled ₹201,116.79 crore at 5.52%. The RBI reported an overnight rate range of 1% to 7.25%.
In its first one-day Variable Rate Reverse Repo (VRRR) auction on Nov. 4, the RBI accepted ₹50,015 crore against ₹50,000 crore notified after receiving ₹73,907 crore in offers. It accepted all ₹1,180 crore offered in a second auction, against ₹25,000 crore notified. Both auctions had cut-off and weighted average rates of 5.49%.
In a subsequent one-day VRRR auction on Nov. 5, the RBI accepted all ₹7,767 crore offered against ₹75,000 crore notified. The weighted average rate was 5.49%.
