RBI data shows Indian banks held ₹7.30 trillion cash balances on Jan 1, rising slightly to ₹7.33 trillion by Jan 10. Borrowings via the Marginal Standing Facility increased from ₹720 million to ₹780 million, reflecting minor liquidity adjustments. The figures highlight overall stability in India’s banking sector.
India’s central bank has released updated figures on banking sector liquidity, highlighting stable cash balances and a slight uptick in borrowings under the Marginal Standing Facility (MSF).
On January 1, 2026, Indian banks reported cash balances of ₹7.30 trillion, while borrowings via the MSF stood at ₹720 million. By January 10, 2026, cash balances had inched up to ₹7.33 trillion, with MSF borrowings rising modestly to ₹780 million, according to the Reserve Bank of India (RBI).
Key Highlights
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Cash balances: ₹7.30 trillion on Jan 1; ₹7.33 trillion on Jan 10.
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MSF borrowings: ₹720 million on Jan 1; ₹780 million on Jan 10.
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Liquidity outlook: Figures indicate ample liquidity in the banking system, with only minor reliance on RBI’s emergency borrowing window.
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Policy context: The MSF allows banks to borrow overnight funds from the RBI against approved government securities, typically used during short-term liquidity mismatches.
The data suggests that while banks maintain healthy liquidity buffers, occasional borrowing under MSF reflects short-term funding adjustments rather than systemic stress. Analysts note that the RBI’s liquidity management framework continues to ensure stability, balancing cash reserves with market needs.
With the Union Budget and monetary policy reviews approaching, these figures provide a snapshot of the banking sector’s liquidity health, reassuring markets of stability in India’s financial system.
Sources: Reserve Bank of India (RBI), Reuters, Economic Times