RBI Liquidity Update: Banks Hold ₹7.19 Trln in Cash Balances

The Reserve Bank of India disclosed key liquidity metrics for December 8, 2025, revealing banks maintaining substantial cash reserves of ₹7.19 trillion with the central bank. This ample buffer contrasts with the government's nil surplus cash balance available for auction, underscoring fiscal spending pressures absorbing available funds.

Refinance operations provided ₹80.08 billion in support, catering to sector-specific needs, while banks tapped the Marginal Standing Facility (MSF) for ₹25.86 billion overnight liquidity. These figures reflect a balanced yet watchful stance by RBI, managing end-of-year flows and festival-season withdrawals.

Overall, liquidity remains resilient but vigilant monitoring continues ahead of potential rate decisions.

Key Highlights

Banks' Cash Balances: ₹7.19 trillion held with RBI, indicating strong reserve position.

Govt Surplus Cash: Nil for auction, signaling full deployment into economy.

Refinance Disbursed: ₹80.08 billion, aiding priority lending sectors.

MSF Borrowings: ₹25.86 billion, modest overnight recourse at penal rate.

Implications: Stable system liquidity; eyes on CPI data and policy cues.

RBI's toolkit keeps markets steady—watch for Wednesday's moves.

Sources: Reserve Bank of India, Economic Times, Moneycontrol