India's key money market gets unusually quiet at start of trade.

India's unsecured overnight money market experienced an unusual quietness, with no orders in the first 90 minutes of trading for two consecutive days through Friday, September 4, 2026. This is attributed to a record cash surplus in the banking system, estimated at an all-time high of 10.5 trillion rupees as of Thursday, following significant inflows from a central bank capital-raising program. The lack of activity has caused the overnight funding rate to drop approximately 30 basis points below the central bank's policy rate, posing a challenge for the Reserve Bank of India in maintaining its benchmark borrowing costs.