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RBI Unveils Rs 1.25 Lakh Crore Liquidity Boost via VRR, Swaps & OMOs

The Reserve Bank of India has announced a series of operations to inject liquidity into the banking system. The measures include a Variable Rate Repo operation, a large USD/INR swap auction, and open market purchase of government securities. These operations are scheduled for late January and early February 2026. The central bank stated it will continue monitoring conditions and take further steps as needed.

Key Points: RBI Announces Major Liquidity Injection Measures for Banking System

  • Rs 25,000 crore 90-day VRR on Jan 30, 2026
  • $10 billion USD/INR 3-year swap on Feb 4, 2026
  • Rs 1 lakh crore OMO purchases in two tranches
  • RBI to ensure orderly liquidity conditions
1 min read

RBI announces measures to manage liquidity conditions

RBI to inject liquidity via Rs 25,000 crore VRR, $10 billion forex swap, and Rs 1 lakh crore OMO purchases in early 2026 to manage conditions.

"will continue to monitor evolving liquidity and market conditions and take measures as appropriate - RBI Statement"

Mumbai, January 24

The Reserve Bank of India has decided to conduct a set of operations to inject liquidity into the banking system after having a review of current liquidity and financial conditions.

The operations include a 90-day Variable Rate Repo (VRR) operation for an amount of Rs 25,000 crore, to be conducted on January 30, 2026, RBI said in a statement.

A USD/INR buy/sell swap auction of USD 10 billion for a tenor of 3 years is to be held on February 04, 2026.

Besides, open market operation (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 1,00,000 crore in two tranches of Rs 50,000 crore each to be held on February 05, 2026, and February 12, 2026.

Detailed instructions for each operation shall be issued separately by the RBI.

Announcing these operations, the central bank said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.

- ANI

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Reader Comments

P
Priya S
Good step. The ₹1 lakh crore OMO purchase is significant. Should help in keeping bond yields in check and support government borrowing. The timing before the budget is also interesting.
R
Rohit P
While managing liquidity is important, I hope RBI is also keeping a close watch on inflation. Too much liquidity can fuel price rises, and aam aadmi like us suffers the most when prices of vegetables and petrol go up.
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Sarah B
The USD/INR swap auction of $10 billion is a smart tool to manage forex liquidity without impacting the spot market directly. Shows the RBI's toolkit is quite sophisticated.
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Vikram M
As a small business owner, timely credit is our lifeline. Hope banks pass on this liquidity benefit quickly and don't just sit on the funds. The system needs this infusion.
K
Karthik V
Respectfully, I feel these measures, while necessary, are often reactive. A more predictable and transparent long-term liquidity framework would help markets plan better. Just my two paise.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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