India Call
Ends at RBI's SDF; weighted average rate up on GST outflows
This story was originally published at 20:04 IST on 20 February 2026
Register to read our real-time news.Informist, Friday, Feb. 20, 2026
By J. Navya Sruthi
MUMBAI – The interbank call money rate ended at the Reserve Bank of India's Standing Deposit Facility rate of 5.0% due to low demand for funds, dealers said. However, the weighted average call rate rose marginally from the previous day due to outflows for goods and services tax payments.
The three-day call rate ended at 5.00%, down from 5.08% on Wednesday. The weighted average call rate rose to 5.11% from 5.07% Wednesday. The weighted average rate in the broader tri-party repo market, which includes mutual funds, was also up at 4.94% from 4.89% Wednesday. Financial markets administered by the Reserve Bank of India were shut on Thursday for Shivaji Jayanti.
According to the latest data, the net liquidity absorbed from the banking system by the RBI – a proxy for the liquidity surplus – was at INR 2.45 trillion Thursday, down from INR 2.52 trillion Wednesday due to outflows for GST payments. Systemic liquidity on Thursday was the lowest since Feb. 6.
Dealers said outflows for GST payments, which began Thursday, are expected to be around INR 1.5 trillion to INR 1.8 trillion. Dealers expect systemic liquidity to be around INR 1 trillion or lower after the outflows for GST payments.
Some dealers expect the RBI to announce another long-term VRR next week after outflows for GST payments. "If liquidity falls to INR 1 trillion or below, then there is no option but to announce a VRR or another OMO to keep rates near repo," a dealer at a private bank said. "This time, RBI may come up with a seven-day or 11-day VRR. It will also monitor the FX (forex) side, if the rupee goes to 91 (per dollar), then they will have to get one (VRR)," the dealer said.
OUTLOOK
On Saturday, the two-day call may open near the RBI's SDF of 5.00% on low demand for funds. During the day, the call money rate is expected to move in a range of 4.80-5.05% due to low trading volume, as is usually the case on Saturdays, dealers said. They also expect rates to rise slightly above the SDF rate due to outflows for GST payments.
CALL RATE
5.00%--Friday's close for three-day loans
5.15%--Friday's open for three-day loans
5.08%--Wednesday's close for two-day loans
BENCHMARK MIBOR (in %)
Mumbai Interbank Outright Rates compiled by Financial Benchmarks India:
|
TENURE |
FRIDAY | WEDNESDAY |
|
Overnight |
5.14 | 5.13 |
|
3-day |
-- | -- |
|
14-day |
5.79 | 5.76 |
|
1-month |
6.00 | 5.99 |
|
3-month |
6.62 | 6.60 |
India Call: Near SDF rate as systemic liquidity surplus comfortable
NEW DELHI – The interbank call money rate was near the Reserve Bank of India's standing deposit facility rate of 5.00% amid comfortable liquidity surplus in the banking system, dealers said. They expect rates to remain at 5.10-5.20% during the day and tri-party repo to be in the range of 4.90-5.0%. "Rates may edge slightly higher after auction payment outflows, but will remain low overall," a dealer at a private sector bank said.
At 1006 IST, the three-day call rate was 5.10%, marginally up from Wednesday's two-day call rate close of 5.08%. The weighted average call rate was 5.15%, compared with 5.07% Wednesday. The weighted average rate in the wider tri-party repo market, which includes mutual funds, was still below the RBI's SDF rate at 4.96%, against 4.89% the previous trading day.
According to latest data, the net liquidity absorbed from the banking system by the RBI -- a proxy for the liquidity surplus -- was at INR 2.52 trillion Wednesday, slightly down from INR 2.62 trillion Tuesday.
Most dealers also do not see the RBI coming up with a variable rate reverse repo, given the upcoming goods and services tax payment outflows starting Friday. "Once GST outflows start, it can push rates slightly higher, near or slightly above the repo rate," a public sector bank dealer said. Liquidity is expected to drop to around INR 1.5 trillion from INR 2.5 trillion currently, potentially pushing rates up on Monday, dealers said. (Vaishali Tyagi)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
