(23 Feb 2026, 12:00)

Overall financial conditions exhibited some tightness from second half of January, says RBI

Reserve Bank of India (RBI) has stated in its latest monthly update that overall financial conditions exhibited some tightness from the second half of January till February so far (up to 17th) driven by relative tightening in the corporate bond market. From a relatively mild surplus in the second half of January, system liquidity rose towards the end of the month and into February. This rise was primarily induced by the accelerated government spending and a series of liquidity-augmenting measures by the RBI. The Reserve Bank conducted six variable-rate repo (VRR) auctions in the second half of January to address the transient liquidity tightness. The Reserve Bank also conducted open market operations (OMOs) purchase auctions amounting to Rs 1.5 lakh crore and 3-year USD/INR Buy/Sell Swap auction of USD 10 billion. Bolstered by adequate liquidity, average net absorption under the liquidity adjustment facility (LAF) increased during January 16, 2026 – February 17, 2026, from the preceding one-month period, with banks availment of deposit facility (SDF) registering a sharp increase. Marginal standing facility (MSF) usage remained broadly stable, suggesting that day-to-day liquidity mismatches were minimal and well-managed.

More News

(27-Feb-2026 16:36)
RBI's 6.48% GS 2035 auction draws over 2.5x bids
(27-Feb-2026 14:30)
India’s ten-year G-sec yield just under one year high, GDP data in focus
(27-Feb-2026 14:15)
US ten-year yield lingers around one-month low
(26-Feb-2026 14:23)
IMF expects USl government debt to reach 140% of GDP by 2030

Tweets by CapitalMarket17

Debt Market News

Overall financial conditions exhibited some tightness from second half of January, says RBI