RBI Data Points To Comfortable Liquidity Despite Large Government Surplus

Key Takeaways

• Government surplus cash balance with the central bank around 1.13 trillion rupees as of December 23.
• Banks’ cash balances reported near 7.31 trillion rupees on the same date, pointing to abundant system liquidity.
• RBI provided refinance of roughly 104.34 billion rupees, illustrating its continued use of liquidity operations to stabilise short-term rates.
• Overall picture indicates a well supplied money market, giving policymakers room to focus on growth and inflation without immediate funding stress.