Government Surplus of ₹307.7 Bln with RBI Highlights Liquidity Position on December 31

India’s year-end liquidity picture points to a moderate drain from higher government balances with the RBI and steady reliance on short-term facilities. Banks’ cash balances totaled ₹7.19 trillion on December 31, while the government’s surplus with the RBI stood at ₹307.7 billion, a level that can temporarily tighten system liquidity. The rupee opened slightly weaker at 89.95 per U.S. dollar versus 89.87 previously, reflecting softer risk appetite and typical turn of year positioning.

Key highlights

• Government surplus with RBI: ₹307.7 billion available for auction
• Banks’ cash balances: ₹7.19 trillion on December 31
• FX opening: USD/INR at 89.95, down 0.09% from 89.87 previous close
• Refinance outstanding: ₹107.88 billion as of December 31
• MSF usage: ₹19.36 billion borrowed by banks on December 31
• Liquidity read-through: Elevated government cash and MSF usage suggest tighter overnight conditions, typical around quarter/year-end

Overall, systemic liquidity appears manageable yet taut, with short-term facilities smoothing intra-day and overnight pressures as markets transition into the new year.

Sources: Reserve Bank of India (RBI) updates