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RBI Announces Rs 2 Lakh Crore OMO Purchase, Dollar Swap to Boost Banking Liquidity

The Reserve Bank of India has announced a series of measures to inject liquidity into the banking system, including open market operation purchases of government securities worth Rs 2 lakh crore. The central bank will also conduct a USD 10 billion buy/sell swap auction in January 2026 to support orderly market conditions.

Key Points: RBI Injects Rs 2 Lakh Crore via OMO Purchases, Announces Dollar Swap Auction

  • RBI announces Rs 2 lakh crore OMO purchase to inject liquidity
  • Central bank schedules four equal tranches through early 2026
  • RBI to conduct USD 10 billion forex swap auction in January
  • Measures aim to ease liquidity pressure and ensure market stability
  • Announcement follows recent OMO purchases and a smaller swap in December
  • RBI reiterates commitment to monitor conditions and ensure financial stability
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RBI to inject Rs 2 Lakh Crore via OMO purchases, dollar swap to boost liquidity in banks

RBI announces Rs 2 lakh crore OMO purchase of govt securities in four tranches and a USD 10 billion forex swap to ease banking system liquidity.

"The purchases will be carried out in four equal tranches of Rs 50,000 crore each, scheduled for December 29, 2025; January 5, 2026; January 12, 2026; and January 22, 2026. - Reserve Bank of India (RBI)"

Mumbai (Maharashtra), December 23

In a bid to inject liquidity into the banking system, the Reserve Bank of India (RBI) on Tuesday announced a series of measures after reviewing prevailing liquidity and financial market conditions.

As part of the initiative, RBI will conduct open market operation (OMO) purchase auctions of Government of India securities worth Rs 2 lakh crore.

"The purchases will be carried out in four equal tranches of Rs 50,000 crore each, scheduled for December 29, 2025; January 5, 2026; January 12, 2026; and January 22, 2026," the RBI said.

In addition, the RBI will hold a USD/INR buy/sell swap auction of USD 10 billion with a tenor of three years on January 13, 2026, aimed at easing liquidity pressures and supporting orderly market conditions.

Further, RBI noted that detailed instructions for each of these operations will be issued separately.

It also reiterated that it will continue to closely monitor evolving liquidity and market conditions and take appropriate steps as required to ensure stability in the financial system.

The announcement underscores the central bank's continued reliance on OMOs to manage liquidity and maintain orderly conditions in government securities markets.

Earlier this month, RBI had announced to conduct two OMO purchase auctions of Government of India securities, each worth Rs 50,000 crore, on December 11 and December 18, bringing the total planned infusion through OMOs to Rs 1,00,000 crore.

Additionally, the RBI also said to undertake a USD/INR Buy/Sell Swap auction of USD 5 billion with a three-year tenor on December 16, 2025.

- ANI

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Reader Comments

S
Sarah B
As someone working in finance, the structured tranches make sense for market stability. The dollar swap is particularly interesting—it should help manage forex volatility. A clear signal that the RBI is watching global headwinds closely.
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Priya S
All this liquidity is fine, but will it actually reach the common man? Banks often sit on excess funds. I hope there is a mechanism to ensure credit flow to MSMEs and agriculture, not just to large corporates. The intent is good, execution is key.
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Vikram M
RBI is doing a balancing act. Pumping in liquidity while trying to control inflation. Let's see if this keeps EMIs in check. The step-by-step approach (tranches) is wise to avoid shocking the system. Bharat's economy needs this support.
R
Rohit P
Good news for the stock market! This kind of liquidity usually boosts sentiment. Maybe Sensex will see a rally. But as a saver, I'm a bit worried about fixed deposit rates coming down further. Can't have it all, I guess.
K
Kavya N
While the measures are technically sound, I have a respectful criticism. The communication could be simpler for the average citizen. Terms like 'OMO' and 'tenor' are jargon. RBI should explain the *why* and *impact* in plain Hindi and regional languages too.
M

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