RBI data shows shift in overnight money market shares
In short
RBI data for the first half of FY26-27 shows private sector banks had a smaller share in the tri-party repo market. Public sector banks gained ground in the collateralised overnight money market, and mutual funds stayed active in tri-party repo.
This matters because it shows who is lending and borrowing in short-term money markets. The report does not say how big the shift was or why it happened.
What the reporting says
RBI data for the first half of fiscal 2026-27 shows private sector banks losing share in the tri-party repo market while public sector banks strengthened their position in the collateralised overnight money market, according to Economic Times Banking Finance. Mutual funds also remained a strong presence in the tri-party repo market. The reporting does not explain the cause of the shift or quantify the share changes.
Why it matters
The reported RBI data points to a change in participation across India’s overnight funding markets, with private sector banks less active in tri-party repo and public sector banks more active in collateralised overnight money markets. Mutual funds remained important participants. This may matter for short-term liquidity patterns, but the source does not provide the size of the shift or any reason for it.