RBI’s Money Market Moves: INR Dips, Liquidity Adjustments in Focus

The Reserve Bank of India (RBI) reported key money market operations for June 3, 2025, highlighting liquidity adjustments and currency fluctuations. The Indian Rupee (INR) opened down 0.18% at 85.7400 per US dollar, compared to its previous close of 85.5900, reflecting market volatility and global economic trends.

 

RBI disclosed that scheduled commercial banks held cash balances of ₹9.48 trillion, ensuring adequate liquidity in the financial system. Additionally, the Indian government’s surplus cash balance with RBI, available for auction, stood at ₹50.19 billion, reinforcing fiscal stability.

 

The central bank also refinanced ₹82.72 billion, supporting short-term liquidity needs. Meanwhile, Indian banks borrowed ₹4.47 billion via the Marginal Standing Facility (MSF), a mechanism allowing banks to access emergency funds at a higher interest rate.

These developments indicate RBI’s active role in managing liquidity, ensuring financial stability amid currency fluctuations. Analysts suggest that global economic factors, inflation trends, and RBI’s monetary policy stance will continue to shape India’s financial landscape.

 

Sources: RBI Press Release, Business Standard, Economic Times