RBI Liquidity Snapshot: Banks’ Cash Balances at ₹7.33 Trillion

India’s financial system witnessed notable liquidity movements on February 26, as per the Reserve Bank of India’s latest update. The data reflects the central bank’s active role in balancing liquidity through cash balances, refinancing, and borrowing facilities.

Key Highlights

• Banks’ Cash Balances: ₹7.33 trillion maintained with RBI.
• Government Surplus Cash Balance: Nil for auction on February 26.
• Refinance Operations: RBI extended ₹74.18 billion in refinance.
• Marginal Standing Facility (MSF): Banks borrowed ₹7.62 billion under MSF.

This liquidity snapshot underscores the RBI’s ongoing efforts to stabilize short-term funding needs while ensuring adequate liquidity in the system. The absence of government surplus cash balance for auction indicates tighter fiscal positioning, while MSF borrowings highlight banks’ reliance on RBI’s emergency funding window.

Such updates are crucial for investors, policymakers, and market participants tracking India’s monetary dynamics, as they provide real-time insights into liquidity pressures and central bank interventions.

Source: Reserve Bank of India (RBI) announcement