RBI Data Reveals Banks Hold Massive ₹8.41 Trillion Cash Buffers Amid Stable Liquidity

The Reserve Bank of India (RBI) released critical liquidity and cash balance data for October 15, 2025, reflecting steady cash availability among scheduled commercial banks and balanced government cash positioning ahead of auctions.

Banks maintained a robust cash reserve amounting to ₹8.41 trillion with the central bank, indicating strong liquidity buffers within the banking system, crucial for supporting credit growth and daily transactions. This positions banks well to meet customer demands without liquidity stress.

Notably, the government’s surplus cash balance with RBI earmarked for auction was reported to be zero, a sign of precise cash management by the treasury to optimize market borrowing and fiscal flows without excess idle funds.

RBI extended refinance loans totaling ₹99.74 billion on the same day, offering additional credit to banks for smooth operations. Moreover, banks utilized ₹23.57 billion under the Marginal Standing Facility (MSF), a window enabling bank borrowing against government securities during tight liquidity phases.

These figures reflect RBI’s proactive liquidity management strategy using various instruments like LAF and MSF to ensure systemic stability and efficient cash flow.

Key Highlights:

Banks held ₹8.41 trillion cash balances with RBI as of October 15, 2025.

Government surplus cash balance with RBI for auction was nil, optimizing fiscal cash flow.

RBI extended refinance support amounting to ₹99.74 billion to banks.

₹23.57 billion borrowed by banks from Marginal Standing Facility, indicating short-term liquidity needs.

Data indicates liquidity buffers are healthy, enabling continued bank credit expansion.

Government cash management avoids surplus stocks, ensuring market efficiency.

RBI employs multiple liquidity tools to balance money markets and facilitate banking operations.

The stable liquidity scenario aligns with RBI’s neutral policy stance amid growth and inflation management.

Banks well-positioned to meet depositor and borrower cash needs without distress.

The data underscores coordinated fiscal and monetary policy actions to sustain economic momentum.

Sources: Reserve Bank of India (RBI), Reuters News