RBI skips 14-day main liquidity operation for third fortnight in a row

RBI holds back 14-day operation for third fortnight, despite ₹3-3.5 tn tax outflows expected, citing adequate liquidity and short-term rate stability

The Reserve Bank of India (RBI) has opted not to conduct its planned 14-day main liquidity operation on Friday, 13 June 2025, after evaluating the prevailing and anticipated liquidity landscape.

 

“On a review of the current and evolving liquidity conditions, it has been decided not to conduct the 14-day main operation on Friday, June 13, 2025, for the upcoming fortnight,” the central bank said on Thursday.

 

This is the third fortnight in a row the central bank has skipped the operation. Although the system is bracing for sizable tax-related outflows—around ₹3 trillion–₹3.5 trillion from advance tax payments and GST obligations between 13 and 20 June—this pressure is expected to be offset by incoming liquidity. Market participants said that while short-term money market rates may experience some upward movement, they are unlikely to breach the policy repo rate. 

 

“We have outflows scheduled in the form of tax payments; there will be some upside in overnight rates,” said a market participant.

 

In addition, the RBI has suspended its daily variable-rate repo (VRR) operations as of 11 June, indicating sufficient surplus liquidity, which stood near ₹2.6 trillion as of Wednesday, latest data by the RBI showed.

 

Inflows worth approximately ₹257 billion from a government bond buyback and another ₹800 billion from bond maturities are expected in the near term.