RBI’s Liquidity Snapshot Reflects Balance Between Banks and Government

The Reserve Bank of India (RBI) released key liquidity data for February 6, 2026, highlighting the state of cash balances, borrowings, and refinancing operations across the banking system.

Key Highlights:

• Banks’ Cash Balances: Stood at ₹7.56 trillion, reflecting stable liquidity conditions.
• Government Surplus Cash Balance: Nil with RBI for auction, indicating no excess funds parked.
• Refinance Operations: RBI conducted refinancing worth ₹90.31 billion to support liquidity.
• Marginal Standing Facility (MSF): Indian banks borrowed ₹320 million via MSF, a window for short-term emergency funding.
• Liqidity Context: These figures underscore RBI’s active role in balancing liquidity and ensuring smooth functioning of the financial system.

The update reflects RBI’s ongoing measures to manage liquidity efficiently, balancing government cash positions with banking sector needs.

Sources: Reuters, RBI Update, Business Standard