Mumbai, January 27, 2026: Money market activity in India remained robust on January 23, 2026, with the overnight segment witnessing strong volumes and largely stable interest rates, according to data released by the Reserve Bank of India (RBI).
Total turnover in the overnight money market segment stood at ₹7.20 lakh crore, reflecting sustained liquidity demand from banks and financial institutions. The weighted average overnight rate was recorded at 5.15 per cent, within a broad range of 3.00 to 6.35 per cent.
Call Money and Repo Market Trends
In the call money market, volumes were moderate at ₹15,722.95 crore, with the weighted average rate at 5.39 per cent, indicating steady short-term borrowing costs.
The triparty repo segment continued to dominate overnight transactions, accounting for ₹5.19 lakh crore in volume at an average rate of 5.11 per cent. Meanwhile, market repo transactions amounted to ₹1.81 lakh crore, with rates averaging 5.24 per cent.
Repo operations backed by corporate bonds saw relatively lower activity at ₹4,460.95 crore, though rates remained on the higher side at 5.45 per cent, reflecting tighter collateral conditions.
Term Money Segment Sees Limited Activity
Activity in the term segment remained subdued. Notice money transactions stood at ₹349.93 crore, while term money transactions amounted to ₹804 crore. The triparty repo in the term segment recorded volumes of ₹2,066 crore at a weighted average rate of 5.06 per cent.
RBI Liquidity Operations and System Position
RBI’s liquidity operations on January 23 reflected a net absorption of ₹1.53 lakh crore, primarily through the Standing Deposit Facility (SDF), where banks parked over ₹1.50 lakh crore at a fixed rate of 5.00 per cent.
Outstanding liquidity operations, however, showed a net injection of ₹89,797 crore, mainly through variable-rate repo operations. Taking both current and outstanding operations together, the system liquidity stood in a net deficit of ₹63,648.95 crore.
The Standing Liquidity Facility (SLF) usage during the period was ₹13,252.05 crore, indicating selective liquidity needs among banks.
Cash Reserves and Durable Liquidity
Cash balances of scheduled commercial banks with the RBI stood at ₹7.61 lakh crore as on January 23, marginally below the average cash reserve requirement for the ongoing fortnight.
RBI data also showed that net durable liquidity in the system remained in surplus at ₹3.43 lakh crore as of December 31, 2025, providing a medium-term cushion despite short-term liquidity pressures.
Overall Market Outlook
The data indicates that while overnight money markets remained well-functioning with ample transaction volumes, liquidity conditions stayed tight, prompting banks to rely on RBI facilities. Interest rates largely hovered around the policy corridor, reflecting effective monetary transmission and active liquidity management by the central bank.