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The Reserve Bank of India (RBI) reported that banks’ cash balances stood at ₹7.30 trillion on January 11, reflecting robust liquidity in the system. On the same day, Indian banks borrowed ₹720 million via the Marginal Standing Facility (MSF), highlighting short-term funding needs despite overall surplus cash reserves.
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India’s central bank, the Reserve Bank of India (RBI), has released fresh liquidity data showing that banks’ cash balances reached ₹7.30 trillion on January 11, 2026. This figure underscores the strength of liquidity in the banking system, even as lenders tapped into short-term borrowing facilities.
Key Highlights
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Cash balances: Aggregate balances of scheduled commercial banks stood at ₹7.30 trillion, reflecting healthy liquidity conditions.
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Marginal Standing Facility (MSF): On January 11, banks borrowed ₹720 million under the MSF, a window that allows overnight borrowing at a penal rate to meet urgent funding requirements.
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Liquidity dynamics: The MSF borrowing indicates temporary mismatches in cash flows, despite the overall surplus liquidity.
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Policy context: The MSF serves as the upper bound of the RBI’s Liquidity Adjustment Facility (LAF) corridor, ensuring stability in money market operations.
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Sector outlook: Analysts note that such borrowing is routine and signals efficient liquidity management rather than stress in the system.
This data highlights the RBI’s role in maintaining monetary stability while ensuring banks have access to emergency funds when needed.
Sources: Reserve Bank of India – Data Releases, RBI Marginal Standing Facility Trends
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