Liquidity Adjustment Facility (LAF) and Other Operations Report

Strategic Insights -

The Reserve Bank of India's (RBI) Liquidity Adjustment Facility (LAF) and other operations report for the period ending July 30, 2025, highlights the liquidity conditions in the market. The report suggests that the RBI injected net liquidity of ₹93,308 crore into the market through its operations. The weighted average rate for the overnight segment stood at 5.34%, while the range of the rates varied from 1.00% to 6.30%.

Key Takeaways:

  • The RBI injected net liquidity of ₹93,308 crore into the market through its operations, which is a significant amount considering the market conditions.
  • The weighted average rate for the overnight segment stood at 5.34%, indicating a moderate level of liquidity in the market.
  • The range of the rates varied from 1.00% to 6.30%, suggesting that the RBI was actively managing the liquidity conditions in the market.
  • The Liquidity Adjustment Facility (LAF) and other operations of the RBI, including the Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF), played a crucial role in managing the liquidity conditions in the market.
  • The net durable liquidity as on July 11, 2025, stood at ₹5,38,578 crore, indicating a surplus in the market.

Statistics:

  • Net liquidity injected from today's operations: - ₹93,308 crore
  • Weighted average rate for the overnight segment: 5.34%
  • Range of the rates: 1.00% to 6.30%
  • Net liquidity injected through MSF: ₹1,408 crore
  • Net liquidity injected through SDF: ₹94,716 crore
  • Net liquidity injected through outstanding operations: - ₹1,60,766.79 crore
  • Net liquidity injected (outstanding including today's operations): - ₹2,54,074.79 crore
  • Cash balances with RBI as on July 30, 2025: ₹9,72,816.78 crore
  • Average daily cash reserve requirement for the fortnight ending August 08, 2025: ₹9,56,146.00 crore
  • Government of India surplus cash balance reckoned for auction as on July 30, 2025: ₹0.00 crore
  • Net durable liquidity as on July 11, 2025: ₹5,38,578.00 crore

Sources:

  • Reserve Bank of India (RBI) *****Volume (One Leg)*****Weighted Average Rate*****Range*****
  • Reserve Bank of India (RBI) *****Net liquidity injected from today's operations*****-₹93,308 crore
  • Reserve Bank of India (RBI) *****Net liquidity injected through MSF*****₹1,408 crore
  • Reserve Bank of India (RBI) *****Net liquidity injected through SDF*****₹94,716 crore
  • Reserve Bank of India (RBI) *****Net liquidity injected through outstanding operations*****-₹1,60,766.79 crore
  • Reserve Bank of India (RBI) *****Net liquidity injected (outstanding including today's operations)*****-₹2,54,074.79 crore