India Central Bank Reports Rs 7.84 Trillion Banks’ Cash Balances on Nov 28; Govt Surplus Nil; Banks Borrow Rs 3.94 Billion via Marginal Standing Facility

The Reserve Bank of India (RBI) released figures for November 28, 2025, showing banks’ aggregate cash balances at Rs 7.84 trillion, a key indicator of system liquidity. The government’s surplus cash balance available for auction with RBI was reported as nil, signaling balanced fiscal cash flow management without excess cash dump in the system.

Refinance extended to banks on that day amounted to Rs 96.37 billion, highlighting RBI’s ongoing support to maintain liquidity in the banking system amid fluctuating demand for funds. Additionally, Indian banks accessed Rs 3.94 billion under the Marginal Standing Facility (MSF), a short-term liquidity window allowing banks to borrow overnight against government securities.

These measures form part of RBI's liquidity-adjustment framework to ensure smooth functioning of the financial system, accommodating both liquidity surpluses and shortages without causing volatility. The marginal borrowing via MSF indicates temporary liquidity requirements by banks, managed prudently under RBI’s regulatory oversight.

Key Highlights:

Banks’ total cash balances stood at Rs 7.84 trillion on Nov 28

Government surplus cash with RBI for auction was nil on Nov 28

Refinance extended to banks was Rs 96.37 billion on the day

Banks borrowed Rs 3.94 billion via the Marginal Standing Facility (MSF)

MSF allows overnight borrowing against government securities for liquidity needs

RBI continues active liquidity management maintaining system stability

Source: Reserve Bank of India official data, Reuters, The Week​