The Reserve Bank of India reported robust cash balances held by banks in the first week of October 2025. On October 5, banks’ cash reserves stood at ₹9.15 trillion, up slightly from ₹9.20 trillion on October 4, reflecting healthy liquidity in the system. Meanwhile, banks borrowed ₹1.57 billion via the Marginal Standing Facility (MSF) on October 5, up from ₹360 million the previous day, reflecting marginal liquidity support demand.
Banks’ Cash Balances
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₹9.20 trillion on October 4, 2025
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Slightly dipped to ₹9.15 trillion on October 5
Borrowing via Marginal Standing Facility (MSF)
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₹360 million borrowed on October 4
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Increased to ₹1.57 billion on October 5
Cash Reserve Requirement
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RBI's average daily Cash Reserve Requirement (CRR) was ₹8.47 trillion
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CRR applies for fortnight ending October 17, 2025
Market Implications:
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Cash balances exceeding CRR signals adequate liquidity and resilience in banking sector
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Rising MSF borrowings indicate cautious liquidity management by banks amid market conditions
Sources: Reserve Bank of India Latest Data, RBI Monetary Policy Documents, Market Analytics Reports