Money Market Operations as on August 23, 2026
Distilled Policy Brief
- Net liquidity is calculated as Repo + MSF + SLF – Reverse Repo – SDF.
- Uncollateralized transactions of 2 to 14 days tenor are covered.
- Uncollateralized transactions of 15 days to one year tenor are covered.
🎯 Prelims High-Yield Examination Points
Formula for net liquidity and tenor categories of uncollateralized transactions are key aspects of RBI's money‑market operations.
⚖️ Mains Analytical & Syllabus Linkages
Analyse the role of RBI's money‑market operations—repo, MSF, SLF, reverse repo—in managing liquidity and stabilising the financial system.
🎯 UPSC Prelims Practice Drill
In the RBI's Money Market Operations report dated 23 August 2026, net liquidity is defined as Repo + MSF + SLF – Reverse Repo – SDF. Which component is subtracted in this calculation?
- [A] Repo
- [B] MSF
- [C] Reverse Repo
- [D] SLF
▶ Reveal Official Answer & Analytical Explanation
The formula for net liquidity subtracts Reverse Repo and SDF. Hence, Reverse Repo is the component that is deducted, while Repo, MSF and SLF are added.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.