RBI Liquidity Snapshot: Banks' Cash Balances Dip Amid Refinance Surge!

Liquidity Update

RBI's daily data reflects balanced liquidity conditions as FY26 progresses. Banks' cash balances at ₹7.13 trillion indicate ample reserves, though govt's nil surplus cash prompts auctions for fine-tuning. Refinance operations and MSF usage show proactive absorption of excess funds amid seasonal flows.​

These metrics help track systemic health—high balances support lending, while tools like MSF (at repo rate) provide overnight relief without stigma. December often sees upticks from tax collections and forex interventions.

Key Highlights

Cash Balances: Banks at ₹7.13 trillion with RBI on Dec 9.​

Govt Surplus: Nil cash available for auction, per RBI.​

Refinance Injection: ₹82.78 billion disbursed on Dec 9.​

MSF Borrowing: Banks drew ₹10.14 billion via Marginal Standing Facility.​

Implications: Stable liquidity supports credit growth; watch for policy cues.

Sources: Reuters (RTRS), RBI Daily Data