The Reserve Bank of India (RBI) on Tuesday announced measures to inject liquidity into the banking system, including open market purchases of government securities worth ₹2 trillion and a USD/INR buy/sell swap auction of $10 billion.
The OMO purchases and the swap auction will be conducted between December 29, 2025, and January 22, 2026, the central bank said.
In a statement, the RBI noted that it will continue to closely monitor evolving liquidity and market conditions and take appropriate steps to ensure orderly liquidity in the financial system.
The announcement follows similar measures taken earlier this month, when the RBI conducted ₹1 trillion worth of OMO purchases of Government of India securities along with a $5 billion USD/INR buy/sell swap auction for a tenor of three years.
After reviewing prevailing liquidity and financial conditions, the central bank said it has decided to undertake further OMO and swap operations to infuse liquidity into the banking system.
Under the plan, OMO purchase auctions of government securities totalling ₹2,00,000 crore will be carried out in four tranches of ₹50,000 crore each, scheduled for December 29, 2025; January 5, 2026; January 12, 2026; and January 22, 2026.
Additionally, the RBI will conduct a USD/INR buy/sell swap auction of $10 billion, with a three-year tenor, on January 13, 2026.
The central bank clarified that the swap will be structured as a simple buy/sell foreign exchange transaction. Under this arrangement, participating banks will sell US dollars to the RBI and simultaneously agree to repurchase the same amount at the end of the swap period.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Readers are advised to refer to official Reserve Bank of India communications and consult qualified professionals before making any financial decisions.
