India’s Banks Hold Rs 8.45 Trillion Cash Balances, Govt Surplus Cash at Rs 585 Billion: RBI Report

The Reserve Bank of India reported that Indian banks maintained substantial liquidity as of October 29, holding Rs 8.45 trillion in cash balances. This ample liquidity reflects the banking sector’s strong cash position amidst steady economic activity and ongoing monetary policy calibration.

On the government front, the surplus cash balance with RBI designated for auction purposes was Rs 585.12 billion, indicating a healthy buffer for government borrowing needs. The RBI also extended refinance facilities amounting to Rs 115.18 billion, supporting banks’ liquidity and credit flow requirements.

Further, Indian banks utilized the Marginal Standing Facility (MSF) to borrow Rs 6.15 billion, a credit window allowing banks emergency access to overnight funds from the RBI at premium rates.

These figures reflect the RBI’s continued focus on balancing liquidity in the market, ensuring smooth functioning of financial institutions amid varying credit demands and economic cycles. The data also provide valuable insight into government cash management and banking sector resilience.

Key Highlights:

Banks’ cash balances with RBI at Rs 8.45 trillion as of Oct 29, 2025.

Government surplus cash balance for auctions stands at Rs 585.12 billion.

RBI refinance extended at Rs 115.18 billion to aid banking sector liquidity.

Banks borrowed Rs 6.15 billion via Marginal Standing Facility on Oct 29.

Indicators reflect RBI’s active liquidity management and economic stability.

Strong cash buffers support credit flow and government borrowing needs.

Sources: Reserve Bank of India, Reuters, PIB