Banking

RBI Announces Liquidity Injection Measures Of Over Rs 2 Lakh Cr

Reserve Bank of India will inject another Rs. 2 lakh crore of liquidity in the banking system. This comes after rupee is nearing the psychologically crucial 92 mark to a dollar and amid RBI's firm interventions in the foreign exchange market

RBI OMO, liquidity injection
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Summary

Summary of this article

  • RBI will inject another Rs. 2 lakh crore of liquidity

  • RBI takes measures to reduce improve banking system liquidity

The Reserve Bank on Friday said it will inject over Rs 2 lakh crore of liquidity into the system through a slew of avenues.

"On a review of current liquidity and financial conditions, the Reserve Bank has decided to conduct the...operations to inject liquidity into the banking system," an official statement said.

The measures include a 90-day Variable Rate Repo (VRR) operation for an amount of Rs 25,000 crore to be conducted on January 30, 2026 and a USD/INR buy-sell swap auction of USD 10 billion or Rs 91,000 crore for a tenor of 3 years to be held on February 4, 2026.

The central bank will also undertake government bond purchases under the open market operations route of an aggregate amount of Rs 1 lakh crore, according to the statement.

This will include buying Rs 50,000 crore each of bond buys on February 5 and February 12, it said.

Detailed instructions for each of the measures will be issued separately, the central bank said, assuring support whenever required.

"The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions," it said. 

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