Macro desk · Net inflow, open-ended debt · month to 31 Aug 2026
Debt mutual funds took in a net Rs 187,511 crore in July 2026 and lost a net Rs 8,127 crore in August
Net inflow, open-ended debt fell by Rs 1.96 lakh crore from July, to −Rs 8,127 crore
Debt mutual funds took in a net Rs 187,511 crore in July 2026 and lost a net Rs 8,127 crore in August, a swing that reaches savers who park cash in these funds and the fund houses that run them. AMFI explains the money that kept coming into short-term funds by "the easing of short-term rates, which boosted returns and attracted inflows into the Ultra Short Term Funds, Money Market Funds and Liquid Funds categories" -- a reason for the shift toward short-term funds, not for the overall swing, whose cause is not yet known.
Published monthly. The page it is printed on at portal.amfiindia.com.
Debt mutual funds went from taking in a net Rs 187,511 crore in July to losing Rs 8,127 crore in August, a swing of Rs 195,639 crore and about 2.1 times a typical month's move. AMFI says money moved toward short-term funds because of "the easing of short-term rates, which boosted returns and attracted inflows into the Ultra Short Term Funds, Money Market Funds and Liquid Funds categories", a reason that explains the shift toward short-term funds, not the overall swing. What we don't know is why the total swung from money in to money out: whether July was the odd month, with cash parked briefly and then taken back, or whether savers turned away from longer-lending debt funds for a reason of their own.
Why we think so3 reasons
On what grounds?
- The first reason is where the swing sits. Liquid funds still drew a net Rs 19,934 crore in August, but that was Rs 99,132 crore less than in July, about half of the whole debt-fund swing; the chart below sets the two flows side by side. So the fall is split between the shortest funds slowing and the rest of debt funds turning to outflow, and no single kind of fund carries it alone.
- That split is exactly where AMFI's own reason stops. AMFI credits easing short-term rates for liquid and money market funds still attracting money, and says this partly offset money leaving overnight funds and longer-lending funds. It explains why short-term funds held up; it gives no reason for the money leaving overnight and longer funds, which is what turned the total negative.
- The rates beside the flows point the same way as AMFI but cannot carry the swing. The average rate on new bank term deposits fell 0.18 percentage points to 5.67 percent, and the three-month Treasury bill stood at 5.27 percent at month end, both fitting AMFI's easing short-term rates. But rates moved by fractions of a point while flows swung by about 2.1 times a typical month, and in five of the seven earlier monthly steps this year the series moved by at least Rs 97,819 crore, so large moves are common here and a big swing is not on its own a sign that something broke.
What would prove us wrong3 trip-wires
What would we have to see to drop that read?
- If a breakdown of August's outflow showed it came from a single group of large holders, such as companies drawing back cash they had parked in July, the swing would have a plain cause and July would be the odd month, not August.
- If longer-lending debt funds turned out to have drawn money in August rather than lost it, AMFI's account of where the outflow sat would not match the figures, and the split this page rests on would be wrong.
- If the next month's figure swings back to a large inflow, August would read as one of this series' ordinary large moves rather than a turn away from debt funds.
Net inflow, open-ended debt, month by month
Is this month's move out of line with the months before it?
What banks offer on a fixed deposit today
| Bank | Deposit | Rate | As of | Source |
|---|---|---|---|---|
| Jana Small Finance Bank | >2 Years - 3 Years (1095 Days) | 8.00% | 30 Sep 2026 | janabank.com |
| ujjivan | 3 Year 1 Day – 3 year 6 months | 7.90% | 30 Sep 2026 | ujjivansfb.bank.in |
| RBL Bank Limited | 18 months to 36 months | 7.25% | 30 Sep 2026 | rblbank.com |
| IDFC FIRST Bank Limited | 500 days – 3 years | 7.10% | 30 Sep 2026 | idfcfirstbank.com |
| The Jammu & Kashmir Bank Limited | 888 days | 7.05% | 30 Sep 2026 | jkb.bank.in |
| indusind | 2 Years to 3 Years | 7.00% | 30 Sep 2026 | indusind.bank.in |
| bankofbaroda | bob Golden Goal deposit Scheme (555 Days) | 6.75% | 29 Sep 2026 | bankofbaroda.bank.in |
| icici | 25 to 36 months | 6.60% | 30 Sep 2026 | icici.bank.in |
| Axis Bank Limited | 5 years to 10 years | 6.50% | 29 Sep 2026 | axisbank.com |
| hdfc | 3 Years 1 day to < 4 Years 7 Months | 6.50% | 29 Sep 2026 | hdfc.bank.in |
| sbi | 2 years to less than 3 years | 6.40% | 30 Sep 2026 | sbi.bank.in |
a bank's offered card rate, not the average rate paid -- never ranked with the RBI's average rates
Which banks are short of deposits
Where rates are heading
| Rate | Latest | As of | Before | Change |
|---|---|---|---|---|
| 3-month treasury bill yield | 5.27 percent | 31 Aug 2026 | 5.28 | −0.01 percentage points against 28 Aug 2026 |
| 12-month treasury bill yield | 5.80 percent | 31 Aug 2026 | 5.79 | +0.01 percentage points against 28 Aug 2026 |
| 10-year government bond yield | 6.97 percent | 31 Aug 2026 | 6.92 | +0.05 percentage points against 28 Aug 2026 |
Bigger than 21 of the 87 earlier monthly changes we hold (24.1% of them), by percentage change. Of the 87 other monthly changes in this series since 30 Apr 2019, 66 were larger than this one by percentage change (Rs 195,639 crore, 104.3%, either way). Counted from the published readings themselves; the tally is ours.
How the rest of the group moved
Did the others move the same month?
median −6.4% across 9 of 13 other series from Association of Mutual Funds in India in Rs crore
What to watch3 things to watch
What happens next, and when would we know?
- Watch September's net inflow for all debt funds: a second month of outflow would make August the start of something rather than a single large move in a series that swings often.
- Watch liquid funds against the rest of debt funds: if liquid funds keep drawing money while longer funds keep losing it, AMFI's short-term-rates reason grows into the main story.
- Watch the rate banks pay on new term deposits beside the three-month Treasury bill: if both keep easing, short-term funds stay attractive, and any further outflow must come from somewhere else.
Who this touches
What does each group do differently, and on what condition?
Opinion · adds no figures the Facts do not hold · every effect is potential and states its condition
| Who | What they do differently | On what condition |
|---|---|---|
| Savers & depositors | a saver choosing where to park cash compares a debt fund's return with a bank term deposit, and both are moving with short-term rates | ◆ if short-term rates keep easing, short-term funds pay more for a while but fresh deposits pay less; a clear trend in later months' flows would settle which way it nets outunclear |
| Asset managers (AMCs) | a fund house earns fees on the money it manages, so a month of net outflow from its debt funds shrinks the base those fees are charged on | ▼ if money keeps leaving overnight and longer-lending debt funds in the months after Augustpotential risk |
| Banks | debt funds and bank term deposits compete for the same parked cash, and bank deposits rose sharply in the same fortnight | ◆ if money leaving debt funds lands in bank deposits it helps banks, but falling fresh deposit rates make deposits less attractive; a split of where the money went would settle itunclear |
| Wealth managers & private banks | a distributor is paid on the money it places and keeps in funds, so redemptions from debt funds cut what it earns | ▼ if the outflow from longer-lending debt funds continuespotential risk |
Go deeper
Learn: Net inflow, open-ended debt, in plain English
What a debt mutual fund is. A debt mutual fund pools savers' money and lends it out by buying bonds, government bills and other IOUs, paying the saver whatever those loans earn. It is for anyone who wants a return on spare cash without buying shares: households parking savings, and companies parking money they will need in days or weeks. Liquid funds, overnight funds, money market funds and ultra short term funds are the kinds that lend for the shortest times; other debt funds lend for longer.
The other words behind these figures
What net inflow means. Net inflow is the money savers put into these funds in a month minus the money they took out. A positive figure means more came in than left; a negative one means more left than came in. The figure here is the total for all open-ended debt funds, with liquid and overnight funds counted inside it, as published by the Association of Mutual Funds in India (AMFI), the funds' industry body.
What happened. In July 2026 a net Rs 187,511 crore came into debt funds. In August a net Rs 8,127 crore left. That is a swing of Rs 195,639 crore in one month.
How big that is for this series. Across the 87 monthly changes before this one, the middle-sized move either way was Rs 95,299 crore, so August's swing was about 2.1 times a typical month. This series swings hard often: of the seven earlier monthly steps in 2026, five moved by at least Rs 97,819 crore, and the largest move before this one was a rise of Rs 542,477 crore in April 2026.
Where liquid funds sit in it. Liquid funds, the shortest-lending kind, still drew a net Rs 19,934 crore in August, but that was Rs 99,132 crore less than in July. That fall makes up about half of the whole debt-fund swing; the other half came from the rest of debt funds.
How other fund flows moved. Of the other AMFI fund-flow series that print a figure for both July and August, nine are comparable here, and the middle one of those fell 6.4%. So debt funds were not alone in seeing less money arrive in August.
What AMFI says. AMFI's August note says liquid and money market funds kept attracting money, which partly offset money leaving overnight funds and longer-lending funds. It puts the pull toward short-term funds down to easing short-term rates. That explains where the money that stayed went; it does not explain why the total turned from money in to money out.
The rates read beside it. The average rate banks paid on new term deposits in August was 5.67 percent, down 0.18 percentage points from July. A Treasury bill is a short loan to the government; on the last day of August the three-month bill's benchmark yield was 5.27 percent and the twelve-month bill's was 5.80 percent, while the ten-year government bond's was 6.97 percent. These are the returns a debt fund's short and long loans are measured against.
Bank deposits in the same weeks. Bank deposits rose by Rs 940,184 crore in the fortnight to 31 August, to Rs 27,871,530 crore, and grew 17.80 percent on a year earlier. That is the main place a saver's cash can sit instead of a debt fund.
The figures, their edition, and where they came from
| Figure | Reading | Date | Edition | Where from |
|---|---|---|---|---|
| Net inflow, open-ended debt | −Rs 8,127 crore | 31 Aug 2026 | portal.amfiindia.com | |
| Net inflow, open-ended debt (previous reading) | Rs 187,511 crore | 31 Jul 2026 | portal.amfiindia.com | |
| Aggregate deposits, scheduled commercial banks | Rs 27,871,530 crore | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Aggregate deposit growth, YoY | 17.80 percent | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Bank credit, scheduled commercial banks | Rs 22,387,567 crore | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Bank credit growth, YoY | 19.10 percent | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Credit-deposit ratio | 80.32 percent | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Time deposits as share of aggregate deposits | 87.63 percent | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Demand deposits | Rs 3,448,742 crore | 31 Aug 2026 | Later edition we hold it as printed in the release of 18 Sep 2026, which is not the first release after 31 Aug 2026 | rbi.org.in |
| Average rate on term deposits taken in the month (WADTDR, fresh) | 5.67 percent | 31 Aug 2026 | rbidocs.rbi.org.in | |
| Average rate on all term deposits held by banks (WADTDR, outstanding) | 6.56 percent | 31 Aug 2026 | rbidocs.rbi.org.in | |
| Average rate on term deposits taken in the month, public sector banks (WADTDR, fresh) | 6.20 percent | 31 Aug 2026 | rbidocs.rbi.org.in | |
| Average rate on term deposits taken in the month, foreign banks (WADTDR, fresh) | 4.70 percent | 31 Aug 2026 | rbidocs.rbi.org.in | |
| 3-month Treasury bill benchmark yield, FBIL daily | 5.27 percent | 31 Aug 2026 | fbil.org.in | |
| 12-month Treasury bill benchmark yield, FBIL daily | 5.80 percent | 31 Aug 2026 | fbil.org.in | |
| 10-year G-sec par yield, FBIL daily (semi-annual YTM) | 6.97 percent | 31 Aug 2026 | fbil.org.in | |
| Net inflow, liquid funds | Rs 19,934 crore | 31 Aug 2026 | portal.amfiindia.com | |
| NRI deposits outstanding, all schemes | 200,897.00 US$ million | 31 Jul 2026 | rbidocs.rbi.org.in | |
| Change in Net inflow, open-ended debt | −Rs 195,639 crore | Our calculation, not printed by any publisher |
How sure we are of each read, and why not more
| Who | Effect | How sure |
|---|---|---|
| Savers & depositors | unclear | Inferred · AMFI's reason covers short-term funds only, not the outflow |
| Asset managers (AMCs) | potential risk | Inferred · one month of outflow, and its cause is not known |
| Banks | unclear | Unresolved · no figure links the money that left funds to the deposits that arrived |
| Wealth managers & private banks | potential risk | Inferred · depends on whether August repeats |
Whether we have said this before
Of 7 earlier steps of this series in 2026, 5 moved by at least half as much in its own unit (Rs 97,819 crore).
Audit trail: how this card was checked, and the store's own notes
Status: Clear. the reading is published and checked
Computed by us, from the published figures:
- Change in Net inflow, open-ended debt: −Rs 195,639 crore, from the 2026-08-31 reading minus the 2026-07-31 reading
Exact figures: Net inflow, open-ended debt −Rs 8,127 crore, −Rs 195,639 crore against 2026-07-31; Net inflow, open-ended debt (previous reading) Rs 187,511 crore; Aggregate deposits, scheduled commercial banks Rs 27,871,530 crore, +Rs 940,184 crore against 2026-08-15; Aggregate deposit growth, YoY 17.80 percent, +3.10 percentage points against 2026-08-15; Bank credit, scheduled commercial banks Rs 22,387,567 crore, +Rs 379,803 crore against 2026-08-15; Bank credit growth, YoY 19.10 percent, +0.80 percentage points against 2026-08-15; Credit-deposit ratio 80.32 percent, −1.40 percentage points against 2026-08-15; Time deposits as share of aggregate deposits 87.63 percent, −0.11 percentage points against 2026-08-15; Demand deposits Rs 3,448,742 crore, +Rs 146,350 crore against 2026-08-15; Average rate on term deposits taken in the month (WADTDR, fresh) 5.67 percent, −0.18 percentage points against 2026-07-31; Average rate on all term deposits held by banks (WADTDR, outstanding) 6.56 percent, −0.02 percentage points against 2026-07-31; Average rate on term deposits taken in the month, public sector banks (WADTDR, fresh) 6.20 percent, −0.15 percentage points against 2026-07-31; Average rate on term deposits taken in the month, foreign banks (WADTDR, fresh) 4.70 percent, −0.18 percentage points against 2026-07-31; 3-month Treasury bill benchmark yield, FBIL daily 5.27 percent, −0.01 percentage points against 2026-08-28; 12-month Treasury bill benchmark yield, FBIL daily 5.80 percent, +0.01 percentage points against 2026-08-28; 10-year G-sec par yield, FBIL daily (semi-annual YTM) 6.97 percent, +0.05 percentage points against 2026-08-28; Net inflow, liquid funds Rs 19,934 crore, −Rs 99,132 crore against 2026-07-31; NRI deposits outstanding, all schemes 200,897.00 US$ million, +32,391.00 US$ million against 2026-06-30.
What the source itself warns about
- Net inflow, open-ended debt. Sub Total - I of AMFI's Monthly Composite Report (all debt categories, liquid and overnight included). No values are typed in here: every reading is fetched from the publisher's own page each run, so it keeps its edition and page link.
- Net inflow, open-ended debt (previous reading). Sub Total - I of AMFI's Monthly Composite Report (all debt categories, liquid and overnight included). No values are typed in here: every reading is fetched from the publisher's own page each run, so it keeps its edition and page link.
- Aggregate deposit growth, YoY. FY2023-24 inflated by a non-bank merging into a bank w.e.f. 1 Jul 2023. RBI's ex-merger figure is 12.9 against the 13.5 recorded.
- Bank credit growth, YoY. FY2023-24 ex-merger figure is 16.3 against the 20.2 recorded.
- Credit-deposit ratio. Ex-merger FY2023-24 is 78.07 and FY2024-25 is 79.14.
- Average rate on term deposits taken in the month (WADTDR, fresh). Same coverage and July 2023 break as the outstanding rate. Monthly from January 2021; March 2020 is a single earlier point and April-December 2020 is not published. No values are typed in here: every reading is fetched from the publisher's own page each run.
- Average rate on all term deposits held by banks (WADTDR, outstanding). Scheduled commercial banks excluding regional rural banks and small finance banks. RBI notes data from July 2023 include the merger of a non-bank with a bank (HDFC into HDFC Bank): a break in the series. No values are typed in here: every reading is fetched from the publisher's own page each run.
- Average rate on term deposits taken in the month, public sector banks (WADTDR, fresh). RBI Table 4, 'Public Sector Banks' column. Small finance banks are excluded from the whole release by RBI's own first sentence; they have no column here. Same July 2023 HDFC merger break as the all-bank rate. No values are typed in here: every reading is fetched from the publisher's own page each run.
- Average rate on term deposits taken in the month, foreign banks (WADTDR, fresh). RBI Table 4, 'Foreign Banks' column. Small finance banks are excluded from the whole release by RBI's own first sentence; they have no column here. Same July 2023 HDFC merger break as the all-bank rate. No values are typed in here: every reading is fetched from the publisher's own page each run.
- 3-month Treasury bill benchmark yield, FBIL daily. FBIL T-bill curve, tenor "3 Months". A VALUATION benchmark, not the 91-day PRIMARY AUCTION yield in "91-day Treasury bill yield, primary auction"; never placed in the same column.
- 12-month Treasury bill benchmark yield, FBIL daily. FBIL T-bill curve, tenor "12 Months". A valuation benchmark, not the 364-day primary auction yield in "364-day Treasury bill yield, primary auction".
- 10-year G-sec par yield, FBIL daily (semi-annual YTM). FBIL "GSec Base/Par Yield" sheet, tenor 10 (years), column "YTM% p.a. (Semi-Annual)" -- the annualised column beside it is NOT read. Dated by the sheet's own printed date. FBIL's public archive list runs about a week behind the day; only dates that list offers are read.
- NRI deposits outstanding, all schemes. Stock at month end, US$ million: a rupee deposit's dollar value moves with the exchange rate even when nobody deposits anything.