India’s central bank reported banks’ cash balances at ₹7.54 trillion on December 13 and 14, 2025. Borrowings via the Marginal Standing Facility rose to ₹25.49 billion and ₹28.68 billion respectively, reflecting short-term liquidity needs. The data highlights stable reserves with temporary funding pressures in the banking system.
Liquidity Snapshot from the Central Bank
India’s central bank released fresh liquidity data highlighting the state of banking reserves and short-term borrowing activity. As of December 13 and 14, 2025, banks maintained cash balances of ₹7.54 trillion, reflecting steady liquidity levels in the system.
Key Highlights
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Cash Balances: The Reserve Bank of India (RBI) reported that banks held ₹7.54 trillion in cash reserves on both December 13 and 14, underscoring stability in daily liquidity positions.
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Borrowings via MSF: Banks borrowed ₹25.49 billion on December 13 and ₹28.68 billion on December 14 through the Marginal Standing Facility (MSF), a window used to meet short-term liquidity mismatches.
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Liquidity Dynamics: The increase in MSF borrowings indicates a temporary demand for funds despite overall healthy cash balances.
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Policy Context: Analysts note that such borrowing trends are common toward mid-month when outflows for government transactions and corporate payments tighten liquidity.
Why It Matters
The RBI’s data provides a real-time snapshot of India’s banking sector liquidity. Stable cash balances alongside rising MSF borrowings suggest banks are managing short-term funding needs effectively, ensuring smooth financial operations while maintaining systemic stability.
Sources: Reuters (RTRS Government Data Release), Reserve Bank of India (RBI) Liquidity Updates