RBI Data Shows Banks’ Cash Balances at ₹7.32 Trillion on Feb 12

The Reserve Bank of India (RBI) released key liquidity data for February 12, highlighting the state of cash balances and borrowing activity in the banking system. According to the update, banks’ cash balances stood at ₹7.32 trillion, reflecting strong liquidity levels.

The RBI further noted that the government’s surplus cash balance with the central bank was nil for auction on the same day, indicating no excess funds parked. Additionally, the central bank provided ₹73.39 billion in refinance, supporting short-term liquidity requirements.

Meanwhile, Indian banks borrowed ₹7.29 billion via the Marginal Standing Facility (MSF), a window used to meet overnight liquidity mismatches. These figures underscore the RBI’s active role in managing liquidity and ensuring stability in the financial system.

Key Highlights

• Banks’ Cash Balances: ₹7.32 trillion as of Feb 12.
• Govt Surplus Cash Balance: Nil for auction on Feb 12.
• Refinance Provided: ₹73.39 billion by RBI.
• MSF Borrowing: Banks borrowed ₹7.29 billion via MSF.
• Liquidity Outlook: RBI continues to balance surplus and short-term needs.

This snapshot reflects the RBI’s ongoing efforts to maintain liquidity equilibrium, crucial for supporting credit flow and financial stability.

Sources: Reuters, RBI Updates, Economic Times