Reserve Bank of India's Liquidity Adjustment Facility Operations

Strategic Insights -

The Reserve Bank of India (RBI) recently conducted Liquidity Adjustment Facility (LAF) operations, which provide liquidity to the banking system through various instruments. These operations are crucial in maintaining the stability of the financial system and ensuring economic growth. The RBI's operations are conducted through various segments, including overnight and term segments, as well as the marginal standing facility (MSF) and standing deposit facility (SDF). In the recent operations, the RBI injected a net liquidity of Rs. 3,65,201.79 crore.

Key Takeaways:

  • The RBI's LAF operations injected a net liquidity of Rs. 3,65,201.79 crore through various instruments.
  • The overnight segment had a weighted average rate of 5.29%, with a range of 4.50-6.45%.
  • The term segment had a weighted average rate of 5.46% for notice money and 5.33% for triparty repo.
  • The MSF and SDF operations had a weighted average rate of 5.75% and 5.25%, respectively.
  • The cash reserves position of scheduled commercial banks showed a balance of Rs. 10,08,860.75 crore as on August 1, 2025.
  • The Government of India surplus cash balance reckoned for auction as on August 1, 2025, was Rs. 0.00 crore.
  • The net durable liquidity as on July 11, 2025, was Rs. 5,38,578.00 crore.

Statistics:

  • Weighted Average Rate (WAV): 5.29% (overnight segment)
  • Range: 4.50-6.45% (overnight segment)
  • Net Liquidity Injected: -3,65,201.79 crore
  • Cash Reserves Position: Rs. 10,08,860.75 crore as on August 1, 2025
  • Government of India Surplus Cash Balance: Rs. 0.00 crore as on August 1, 2025
  • Net Durable Liquidity: Rs. 5,38,578.00 crore as on July 11, 2025

Sources:

  • Reserve Bank of India (Amount in é  crore, Rate in Per cent)
  • MIL OSI Economics