The Reserve Bank of India is considering an additional liquidity injection of around ₹1 lakh crore to ease tight conditions in the banking system. Following recent open market operations and dollar swap auctions, the move aims to ensure financial stability, support credit growth, and maintain orderly market functioning.
Liquidity Push In Focus
The RBI has already announced government securities purchases worth ₹2 lakh crore and a $10 billion dollar‑rupee swap to address liquidity deficits in December 2025. With advance tax outflows and year‑end pressures straining banks, the central bank may step up further support. Analysts suggest the infusion will help smoothen credit flows and reinforce monetary transmission at a critical juncture for the economy.
Key Highlights
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OMO purchases of government securities worth ₹2 lakh crore scheduled in four tranches between December 29 and January 22
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A $10 billion USD/INR swap auction planned for January 13 to inject foreign currency liquidity
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Liquidity deficit stood at nearly ₹55,000 crore as of December 22, prompting RBI’s intervention
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Additional ₹1 lakh crore infusion under consideration to provide comfort to banks and markets
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Measures expected to stabilize short‑term rates and support lending activity
Impact On Economy
The RBI’s proactive stance signals its commitment to maintaining adequate liquidity while balancing inflation and growth priorities. For banks, the infusion offers relief from funding stress, while for businesses and consumers, it promises smoother credit availability as India heads into 2026.
Sources: The Hindu Business Line, Times of India, Economic Times, New Indian Express, India Today