Liquidity Watch: RBI Reports Banks’ Cash Balances at ₹7.59 Trillion, Borrowings Rise via MSF

The Reserve Bank of India (RBI) released key liquidity data for January 27, highlighting the state of cash balances and borrowing activity across the banking sector. The figures underscore the central bank’s ongoing role in balancing liquidity through refinance operations and standing facilities.

Key Highlights:

• Banks’ Cash Balances: ₹7.59 trillion held with the RBI on January 27.
• Government Surplus Cash Balance: Nil, indicating no excess funds available for auction.
• Refinance Operations: ₹132.52 billion extended by the RBI to support liquidity needs.
• Marginal Standing Facility (MSF): Banks borrowed ₹179.51 billion, reflecting short-term funding requirements.

The data points to a tight liquidity environment, with banks actively tapping RBI facilities to meet short-term obligations. The absence of government surplus cash balances further emphasizes reliance on central bank mechanisms. Analysts suggest these movements will be closely watched ahead of the Union Budget, as fiscal and monetary dynamics converge.

Sources: Reuters, RBI Data Release.