On October 21, 2025, India’s central bank reported that scheduled commercial banks held ₹9.01 trillion in cash balances. Additionally, banks borrowed ₹470 million through the Marginal Standing Facility (MSF), reflecting short-term liquidity needs. These figures offer a glimpse into the banking sector’s liquidity posture and overnight funding dynamics.
Show more
The Reserve Bank of India (RBI) released its daily liquidity update, highlighting the cash position and borrowing activity of Indian banks as of October 21, 2025. The data underscores a stable liquidity environment with minimal stress in the overnight funding market.
Notable Updates:
-
Cash Balances: Scheduled commercial banks maintained a robust ₹9.01 trillion in cash reserves with the RBI, indicating healthy liquidity and reserve management.
-
MSF Borrowing: Banks borrowed ₹470 million via the Marginal Standing Facility, a window for emergency overnight funding at a penal rate.
Major Takeaways:
-
Liquidity Comfort: The high cash balance suggests that banks are well-capitalized and not facing immediate liquidity crunches.
-
Limited MSF Usage: The modest MSF borrowing reflects minimal short-term stress, with banks using the facility sparingly.
-
Monetary Stability: These indicators point to a balanced liquidity scenario, supporting RBI’s monetary policy stance.
The data serves as a key barometer for market participants tracking banking sector health and short-term funding trends.
Sources: Reserve Bank of India – Liquidity Operations, NSE Circulars, Bloomberg India.
Stay Ahead – Explore Now!
State Debt Yields Dip as Provident Funds and State Banks Increase Purchases
Advertisement
Advertisement