Banks Hold ₹7.78 Trillion in Cash; RBI Manages Surplus with Precision

India’s financial system displayed robust liquidity on January 19, with banks holding cash balances of ₹7.78 trillion, according to data released by the Reserve Bank of India (RBI). The government’s surplus cash balance with the RBI for auction purposes was reported at ₹587.40 billion, highlighting strong fiscal positioning.

The RBI also confirmed refinancing operations worth ₹131.79 billion, ensuring liquidity support for the banking sector. Additionally, Indian banks borrowed ₹2.31 billion via the Marginal Standing Facility (MSF), a window that allows banks to access emergency funds overnight.

Key Highlights:

• Banks’ Cash Balances: ₹7.78 trillion as of January 19.
• Government Surplus Cash Balance: ₹587.40 billion with RBI for auction.
• RBI Refinance: ₹131.79 billion injected into the system.
• MSF Borrowing: Banks accessed ₹2.31 billion for short-term liquidity needs.
• Liquidity Outlook: Data reflects active liquidity management by RBI and strong cash reserves across banks.

This snapshot underscores the resilience of India’s banking system and the RBI’s proactive role in balancing liquidity, ensuring stability amid evolving market conditions.

Sources: Reuters, Reserve Bank of India