Money Market Operations: An Analysis of Fund Circulation on 12/08/2026

The Reserve Bank of India (RBI) published the money market operations conducted on August 12, 2026, providing a detailed view of fund circulation and the instruments used. The daily segment witnessed a substantial volume of transactions totaling 595 billion rupees crores with an average weighted rate of 5.06%. This report highlights the diversity of financial instruments employed and the associated rates for each. For instance, Call Money had the highest volume, followed by Triparty Repo and Market Repo. Notably, term segment presented a significant variation in rates, highlighting volatility in the overnight market. Operations under Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) also injected 53.845 billion rupees crores into liquidity. However, the absence of any corporate bond repo operation is an interesting point that merits further investigation. This analysis underscores the delicate balance between supply and demand for funds in the banking system, reflecting global and local market conditions. The strong volatility in rates, particularly in the term segment, suggests a closer watch on potential policy changes by financial markets.