RBI announces measures to infuse US$ 22.30 billion of liquidity into banking system
- IBEF
- December 26, 2025
The Reserve Bank of India (RBI) has announced a new set of liquidity-enhancing measures to ensure adequate and durable liquidity in the banking system, following a review of prevailing financial conditions. As part of this initiative, the central bank will conduct Open Market Operations (OMOs) to purchase Government of India securities worth Rs. 2 lakh crore (US$ 22.30 billion). These purchases will be carried out in four tranches of Rs. 50,000 crore (US$ 5.57 billion) each, scheduled for December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026. The move is aimed at strengthening liquidity, supporting credit flows, and maintaining orderly market conditions, especially during seasonal cash outflows.
In addition to OMOs, the RBI will conduct a USD/INR Buy/Sell Swap auction of US$ 10 billion with a tenor of three years on January 13, 2026, further reinforcing durable liquidity in the system. These proactive steps follow a temporary liquidity deficit caused by advance tax and goods and services tax (GST) payments, which led to higher cash outflows from the banking system. At present, system liquidity stands at a deficit of around Rs. 54,851.83 crore (US$ 6.11 billion). Despite this short-term pressure, the RBI has consistently supported liquidity through variable rate repo (VRR) auctions, OMO purchases, and forex swap operations. The latest measures underline the central bank’s commitment to maintaining financial stability, ensuring smooth transmission of monetary policy, and fostering a supportive environment for economic activity. By deploying a combination of domestic and forex liquidity tools, the RBI continues to demonstrate agility and readiness in addressing evolving market needs while strengthening confidence in India’s financial system.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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