On February 10, India’s central bank reported banks’ cash balances at ₹7.30 trillion, with government surplus cash at nil. Refinance stood at ₹84.16 billion, while banks borrowed ₹7.54 billion via the Marginal Standing Facility. These figures highlight liquidity conditions and RBI’s role in maintaining financial stability.
India’s central bank released key liquidity data for February 10, offering insights into the financial system’s balance sheet.
Key Highlights
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Banks’ Cash Balances: Total balances stood at ₹7.30 trillion, reflecting robust liquidity in the system.
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Government Surplus: Surplus cash with the RBI was reported as nil, indicating no excess funds available for auction.
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Refinance Operations: The central bank extended ₹84.16 billion in refinance, supporting short-term funding needs.
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Marginal Standing Facility (MSF): Indian banks borrowed ₹7.54 billion via MSF, a window used to meet overnight liquidity requirements.
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Liquidity Outlook: These figures suggest a balanced liquidity environment, with RBI actively managing cash flows to ensure stability.
Analysts note that the absence of government surplus cash and reliance on MSF borrowing underscores the importance of RBI’s liquidity management tools. The refinance support and steady cash balances highlight resilience in India’s banking sector, even as global uncertainties continue to influence capital flows and interest rate expectations.
Sources: Reuters, Reserve Bank of India, Economic Times