Money Market Operations: RBI Actions on September 5, 2026

On Thursday, September 5, 2026, the money market operations in India displayed a diverse mix of segments and instruments. The overnight segment (I+II+III+IV) recorded a significant volume with call money leading at ₹1.13175 billion. However, the average interest rate range varied between 1.5% to 6%, reflecting market volatility. In terms of repos, rates ranged from 2.99% to 3.87%, with repo tripartite instruments accounting for ₹15.969 billion.

Notably, Reserve Bank of India (RBI) operations were significant on that day. The liquidity adjustment facility (LAF) was the primary intervention tool, with two reverse repo operations totaling ₹500 million at a fixed rate of 5.5%. The standing deposit facility (SDF) injection was even more substantial, injecting a total of ₹242.3 billion. This indicated RBI's strategy to maintain monetary stability and ensure adequate liquidity availability.

In terms of macroeconomic impact, these operations suggest a cautious economic environment in India, where short-term interest rates have remained stable but show signs of volatility that may influence future monetary decisions.