Money markets, 12 Oct: overnight rate 5.35%, RBI absorbs ₹3.4 lakh crore
On 12 October, overnight rates edged up to about 5.35% and net cash absorbed by RBI fell to ₹3,35,901 crore.
Official title: Money Market Operations as on October 12, 2026 · Press Release 2026-2027/1316
What happened
On 12 October 2026, overnight money market lending was ₹7,21,635 crore at a weighted average rate of 5.35%. Call money was ₹16,198 crore at 5.41%, and triparty repo ₹5,14,009 crore at 5.33%. Both were a little higher than on 9 October.
RBI took ₹37,558 crore through a 3-day VRRR at 5.49%. Banks parked ₹2,06,081 crore overnight at the Standing Deposit Facility (5.25%). Net liquidity absorbed was ₹3,35,901 crore, down from about ₹3.7 lakh crore on 9 October. Banks' cash balances with RBI were ₹8,01,723 crore. Surplus cash was shrinking.
What it means for you
No direct effect on your savings or loans. These figures show how easy or tight cash is for banks, which feeds slowly into short-term interest rates.
What it means for businesses
Banks and treasuries watch these rates for the cost of overnight money. For other businesses the effect is indirect.
Links in this release, explained
- RBI press release 2025-2026/1201 (30 September 2025)
The notice referred to in the footnotes for the variable rate (VRR and VRRR) lines in the table. It is the background for how those auctions are reported.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61317 - RBI press release 2022-2023/41 (8 April 2022)
The footnote source for the Standing Deposit Facility (SDF) lines, the window where banks park spare cash with RBI overnight.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53539 - RBI press release 2014-2015/1971 (19 March 2015)
The footnote source for the line on the Government of India surplus cash balance reckoned for auctions.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=33496 - RBI press release 2023-2024/1548 (27 December 2023)
The footnote source for the Marginal Standing Facility (MSF) lines, the window where banks borrow from RBI overnight at a higher rate.
www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56998 - RBI notification RBI/2025-26/148 (11 December 2025): CRR and SLR amendment directions
The RBI rule on the cash reserve ratio, the share of deposits banks must keep with RBI. The table uses it to state the cash banks must hold on average over the fortnight.
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13224&Mode=0
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.