RBI Absorbs ₹2.18 Lakh Crore in Liquidity on May 30th
By Ankur Chandra | Published at: Jun 2, 2025 12:13 PM IST
Mumbai, June 2, 2025 – The Reserve Bank of India (RBI) absorbed ₹2.18 lakh crore from the banking system on May 30, 2025, reflecting persistent surplus liquidity in the financial system. RBI’s latest money market data reveals robust participation in both overnight and term segments, with triparty and market repos accounting for the bulk of activity.
Strong Market Volumes Led by Repo Activity
In the overnight segment, total trading volume reached ₹15,924.84 crore. The weighted average rate stood at 5.87%.
Breakdown of overnight flows:
- Call money: ₹1,254.14 crore at 5.55%
- Triparty repo: ₹13,228.50 crore at 5.90%
- Market repo: ₹63 crore
- Corporate bond repo: ₹1,379.20 crore
The term segment recorded higher secured borrowing:
| Instrument | Volume (₹ Cr) | Weighted Avg. Rate (%) |
|---|---|---|
| Triparty Repo | 4,48,258.90 | 5.84 |
| Market Repo | 1,93,830.04 | 5.74 |
| Notice Money | 15,580.47 | 5.85 |
| Term Money | 977.00 | — |
| Corporate Bond Repo | 0.00 | — |
Banks’ preference for collateralised routes remains evident amid surplus liquidity.
RBI Operations Show Dominant Liquidity Absorption
The RBI held a 3-day variable rate repo auction worth ₹8,721 crore, setting a cut-off rate at 6.01%. However, liquidity absorption via the Standing Deposit Facility (SDF) far surpassed injections:
- SDF (1–3 day tenors): ₹2,29,098 crore at 5.75%
- Marginal Standing Facility (MSF): ₹1,540 crore at 6.25%
Net liquidity absorbed stood at ₹–2,18,837 crore, indicating the RBI’s active role in managing excess liquidity.
Banking Liquidity Metrics
- Scheduled Commercial Banks’ cash with RBI: ₹9,63,159.59 crore
- CRR average daily requirement: ₹9,48,817 crore
- SLF availed: ₹8,594.62 crore
- GoI surplus cash parked via auction: ₹8,721 crore
- Net durable liquidity (as of May 16): ₹3,48,763 crore
Bank balances continue to exceed CRR norms, supporting the prevailing surplus.
Outlook Ahead of MPC Meeting
As the Monetary Policy Committee prepares to meet on June 6, the RBI’s continued use of absorption tools, including SDF and variable rate operations, suggests a cautious but steady approach to managing excess liquidity. The focus on collateralised flows reflects a strategy to stabilise short-term rates without causing market disruption.
REF: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR450MMO5D86070655F84B35BD6EFA6C6670FA6F.PDF
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