Indian banks maintained cash balances of ₹8.48 trillion on November 16, with ₹1.25 billion borrowed via RBI’s Marginal Standing Facility. The average daily Cash Reserve Requirement for the two weeks ending November 28 stood at ₹8.06 trillion, reflecting continued liquidity management by the central bank.
According to the Reserve Bank of India (RBI), Indian banks held cash balances of ₹8.48 trillion on November 16, a slight increase from ₹8.48 trillion the previous day. Simultaneously, banks borrowed ₹1.25 billion through RBI’s Marginal Standing Facility (MSF) on November 16, showcasing ongoing liquidity support.
Key Highlights:
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Cash Balances: Banks maintained healthy overnight cash balances at ₹8.48 trillion as part of liquidity buffers to manage daily operations.
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Marginal Standing Facility (MSF) Usage: Borrowings under MSF rose to ₹1.25 billion on November 16 from ₹1.06 billion on November 15, indicating demand for short-term emergency funding.
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Cash Reserve Requirement (CRR): RBI reported an average daily CRR of ₹8.06 trillion for the fortnight ending November 28, reflecting regulatory compliance and monetary policy stance.
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Liquidity Management: These figures underscore RBI’s active role in balancing liquidity needs through tools such as MSF and reserve mandates to ensure monetary stability.
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Market Impact: Maintaining adequate cash balances and borrowing capacities mitigates volatility and ensures seamless banking system functioning.
The RBI’s vigilant liquidity oversight sustains confidence in India’s banking system amid evolving macroeconomic conditions.
Sources: RBI circulars, Reuters, Economic Times, Business Standard.