The Reserve Bank of India (RBI) reported banks’ cash balances at approximately ₹8.94 trillion on November 2 and ₹8.96 trillion on November 1. Indian banks borrowed ₹3.70 billion and ₹4.21 billion via the Marginal Standing Facility (MSF) on these respective days. The average daily cash reserve requirement for the two weeks ending November 14 stands at ₹7.97 trillion.
The Reserve Bank of India (RBI) released key liquidity data revealing that Indian banks’ cash balances stood robustly at ₹8.94 trillion on November 2 and slightly higher at ₹8.96 trillion on November 1. These substantial balances indicate a stable liquidity environment in the banking sector, exceeding the average daily cash reserve requirement (CRR) of ₹7.97 trillion for the fortnight ending November 14.
Key Highlights:
-
Cash Balances: Banks maintained strong cash reserves above the mandated CRR, reflecting adequate liquidity for lending and operational needs.
-
Marginal Standing Facility Borrowings: Indian banks accessed the RBI’s Marginal Standing Facility to the tune of ₹3.70 billion on November 2 and ₹4.21 billion on November 1, showing tactical liquidity management by banks under market conditions.
-
Average CRR: The average daily cash reserve requirement set by RBI stands at ₹7.97 trillion for the two-week period, ensuring banks park sufficient funds with the central bank to control money supply.
-
Liquidity Insights: These figures offer insights into the liquidity positioning of banks, crucial for policymakers, investors, and market watchers to gauge monetary stability.
This consistent liquidity trend signifies RBI’s effective calibration of monetary policy tools to maintain financial stability while ensuring adequate funds flow through India’s banking system.
Sources: Reserve Bank of India (RBI) official releases, Economic Times, Business Standard