RBI Announces Measures to Inject ₹1.5 Trillion into Banking System

The Reserve Bank of India (RBI) has unveiled a series of initiatives to infuse ₹1.5 trillion into the banking system, aiming to alleviate the current liquidity deficit. These measures include purchasing government securities worth ₹60,000 crore through open market operations in three tranches, conducting a 56-day variable rate repo auction of ₹50,000 crore on February 7, and executing a $5 billion USD/INR buy/sell swap auction on January 31. These steps are anticipated to ensure orderly liquidity conditions and have led to market speculation about a potential rate cut in the upcoming monetary policy review.