RBI Reports Banks’ Cash Balances At ₹7.81 Trillion

India’s central bank has released key liquidity data reflecting the state of cash balances and borrowing activity in the banking sector. The figures provide insight into how banks are managing liquidity amid evolving market conditions and regulatory frameworks.

Key Highlights

• Banks’ cash balances with the RBI were reported at ₹7.81 trillion as of January 2, 2026.
• Indian banks borrowed ₹11.91 billion via the Marginal Standing Facility (MSF) on the same day.
• The MSF allows scheduled commercial banks to borrow overnight funds from the RBI against approved government securities.
• Borrowing under MSF indicates short-term liquidity adjustments by banks to meet reserve requirements.
• The data underscores the RBI’s role in ensuring liquidity stability while banks balance cash holdings and borrowing needs.
• Liquidity levels remain broadly adequate, reflecting resilience in the financial system despite short-term borrowing activity.

Broader Context
These figures highlight the importance of liquidity management in India’s banking sector. While cash balances remain strong, the use of MSF shows banks’ reliance on central bank facilities for short-term funding, ensuring smooth functioning of the financial system.

Sources: Reuters India, Reserve Bank of India