The Reserve Bank of India (RBI) has released its latest money market data for June 11, 2025, highlighting key liquidity movements in the banking system. While banks maintained cash balances of ₹9.31 trillion, the government’s surplus cash balance with RBI for auction stood at nil, indicating a shift in liquidity management.
Key Highlights:
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Refinance Operations: RBI provided ₹84.71 billion in refinance, supporting liquidity needs across financial institutions.
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Marginal Standing Facility (MSF) Borrowing: Indian banks borrowed ₹11.24 billion via MSF, reflecting shortterm liquidity adjustments.
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Government Cash Balance: The government’s auctionable surplus cash balance was nil, suggesting no immediate liquidity injection from fiscal reserves.
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Liquidity Surplus Impact: RBI’s decision to halt daily Variable Rate Repo (VRR) auctions from June 11 comes as system liquidity reaches a ₹2.75 trillion surplus, reducing the need for frequent shortterm injections.
With liquidity conditions evolving, RBI’s latest moves indicate a shift toward longerterm liquidity management, balancing financial stability with market needs.
Sources: Moneycontrol, The Week, MENAFN