The Reserve Bank of India (RBI) has decided not to conduct its scheduled 14-day main liquidity operation on Friday, 13 June 2025, following an assessment of the current and anticipated liquidity conditions in the banking system. “In view of the prevailing and evolving liquidity situation, the 14-day main operation planned for June 13, 2025, will not be held,” the central bank announced on Thursday.

This marks the third consecutive fortnight in which the RBI has skipped this operation. The decision comes even as the system is expected to face significant outflows, estimated at ₹3 trillion to ₹3.5 trillion, due to advance tax and GST payments between 13 and 20 June. However, these outflows are likely to be counterbalanced by incoming liquidity, according to market analysts. Although short-term money market rates may inch upward as a result of the expected tax-related outflows, experts believe these rates will remain below the RBI’s policy repo rate. “Overnight rates may rise slightly because of the scheduled tax payments,” a market participant noted.

Further, the RBI has also paused its daily variable-rate repo (VRR) auctions from 11 June onward, signaling that liquidity remains ample. According to recent RBI data, the banking system had a liquidity surplus of around ₹2.6 trillion as of Wednesday. Additional inflows are anticipated from a ₹257 billion government bond buyback and approximately ₹800 billion from upcoming bond maturities, both of which are expected to ease any pressure on liquidity in the near term.