The RBI will inject Rs 2 lakh crore into the banking system via OMO purchase auctions in four tranches. It will also conduct a USD 10 billion buy/sell swap auction to ease liquidity pressures and support orderly market conditions.
RBI Unveils New Liquidity Measures
In a bid to inject liquidity into the banking system, the Reserve Bank of India (RBI) on Tuesday announced a series of measures after reviewing prevailing liquidity and financial market conditions.
As part of the initiative, RBI will conduct open market operation (OMO) purchase auctions of Government of India securities worth Rs 2 lakh crore.
"The purchases will be carried out in four equal tranches of Rs 50,000 crore each, scheduled for December 29, 2025; January 5, 2026; January 12, 2026; and January 22, 2026," the RBI said.
In addition, the RBI will hold a USD/INR buy/sell swap auction of USD 10 billion with a tenor of three years on January 13, 2026, aimed at easing liquidity pressures and supporting orderly market conditions.
Further, RBI noted that detailed instructions for each of these operations will be issued separately. It also reiterated that it will continue to closely monitor evolving liquidity and market conditions and take appropriate steps as required to ensure stability in the financial system.
Context of Continued Market Support
The announcement underscores the central bank's continued reliance on OMOs to manage liquidity and maintain orderly conditions in government securities markets.
Earlier this month, RBI had announced to conduct two OMO purchase auctions of Government of India securities, each worth Rs 50,000 crore, on December 11 and December 18, bringing the total planned infusion through OMOs to Rs 1,00,000 crore.
Additionally, the RBI also said to undertake a USD/INR Buy/Sell Swap auction of USD 5 billion with a three-year tenor on December 16, 2025.
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