BUSINESS
RBI opens the tap, but liquidity deficit may greet banks in early 2026
On December 23, the RBI announced that it will conduct Rs 2 lakh crore OMO purchase auctions of Government of India securities in four tranches, and USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 3 years. Majority of the auctions will be held in January, except one OMO purchase which is scheduled on December 29, 2025.
BUSINESS
Low inflation drove RBI’s rate cut, not high growth: MPC member Saugata Bhattacharya
Given my understanding of the evolution of “underlying” inflation over the next few quarter, in the backdrop of the forecast headline inflation, there remains a concern that prices might be less than optimal for stable economic growth, Bhattacharya said.
BUSINESS
Acquisition finance will be the key theme for banks in 2026; banks may explore M&A options
The push comes at a time when India’s M&A deal environment is showing a good amount of deals. Emirates NBD acquiring a 60% stake in RBL Bank, JSW Paints acquiring 75% stake in Akzo Nobel India, Torrent Pharmaceuticals buying JB Chemicals & Pharmaceuticals, and ONGC NTPC Green buying full stake in Ayana Renewable Power Pvt Ltd are examples.
BUSINESS
Low inflation signals demand stress in India, says RBI MPC Member Nagesh Kumar
In the last three months, India’s retail inflation remained below the RBI’s lower tolerance band. As per data, CPI inflation stood at 0.7 percent in November, 0.3 percent in October, and 1.44 percent in September.
BUSINESS
Power Finance Corp withdraws 2-year, 5-year bond issue 3rd time in a row amid high yields
Money market experts said that the investors have started demanding higher rates in the last few weeks, firstly in anticipation of rate cut before the monetary policy, and later due to uptick in yields on government securities following dimming rate cut view post release of the RBI monetary policy committee (MPC) minutes.
BUSINESS
RBI net sold $11.88 billion in October amid heightened volatility in Indian rupee
In October, the Indian rupee remained in the range of 87-88 against the US dollar. After this, the local currency started depreciating sharply amid outflows by the foreign portfolio investors (FPI) from Indian equities.
BUSINESS
Why is India’s currency Asia's worst-performing?
Tariff differential is a factor shaping market perception. The US has imposed tariffs as high as 50% on Indian imports, significantly above many of its Asian counterparts, including Indonesia, leading to a sharp depreciation of the currency.
BUSINESS
Rupee faces pressure amid rate cut, but imported inflation likely to stay contained: RBI MPC member Ram Singh
The currency has been under pressure in the last few weeks especially due to delay in the trade deal, which led to the currency hitting fresh record lows. On the other hand, the limited intervention by the RBI was also adding to the pain.
BUSINESS
Indian Rupee’s revival: Best close in over two weeks, outperform Asian peers
According to Bloomberg data, the rupee appreciated 0.67 percent on a single day, emerging as the best-performing currency among Asian peers. Over the week, it gained 0.86 percent, and since the RBI began heavy interventions on December 16, the currency has strengthened by 1.54 percent.
BUSINESS
Banking system cash squeeze sends overnight rates above RBI’s repo rate
Weighted average call money rates were trading at 5.25 percent on December 15, aligned with the report rate when liquidity was in surplus mode. The rates shot up to 5.41 percent on December 16, when liquidity fell in deficit. The rates stood at 5.46 percent on December 17, and 5.36 percent on December 18.
BUSINESS
20 years of the Indian Rupee: Rocky road, steady depreciation
Going ahead, the next chapter for the rupee will hinge on three critical variables: the trajectory of India-US trade talks, portfolio flows in the face of elevated US yields, and the central bank’s appetite for intervention if volatility spikes.
BUSINESS
RBI may pause OMO purchases, turn to VRR auctions for liquidity management
The central bank in this month has provided durable liquidity of Rs 1.50 lakh crore through OMO purchases and USD/INR Buy/Sell swap auctions. Additionally, through VRR auctions, the central bank inject liquidity worth Rs 2.60 lakh crore.
BUSINESS
Banking system liquidity turns deficit nearly after two months despite RBI’s support
According to the RBI’s data, banking system liquidity stood at Rs 60,787.81 crore deficit as on December 17. This marks a deficit after October 28, 2025, when the deficit stood at Rs 8,083.79 crore.
BUSINESS
Why RBI’s forward market intervention matters more than spot?
The central bank increased its short dollar forward positions by $6 billion in September, marking the first rise in six months. This marks an important move by the central bank when the Indian rupee has been depreciating sharply and support was needed without reducing the forex reserves. Usually, forward position by the RBI helps the currency to cool off a bit.
BUSINESS
RBI’s heavy intervention triggers rupee’s biggest single-day gain in seven months
This is the domestic currency's biggest single-day gain in seven months
BUSINESS
Rupee to stay around 91-92/USD till FY26-end, RBI to intervene to curb sharp swings, says Axis Bank’s Neelkanth Mishra
Currency markets have no natural anchor like equity markets do. So, movements can overshoot in the short term. However, once volatility becomes excessive, the RBI will step in, Mishra said.
BUSINESS
Credit surge continues: Banks log over 10% growth for seventh week post GST reduction
RBI data showed that bank credit stood at Rs 200.11 lakh crore as on November 28, as compared to Rs 179.59 lakh crore in a year ago period, and Rs 198.54 lakh crore as on November 14, 2025.
BUSINESS
Why India’s strong macros aren't soothing the Rupee?
The local currency has surpassed the psychological level of 90 on December 3 and yet again recorded a low 90.5625 against the US dollar. This is despite India’s resilient macroeconomic conditions.
BUSINESS
A year of disruption: How RBI Governor Sanjay Malhotra rewrote the rulebook with 81 regulatory changes
On October 1, the RBI announced over 21 deregulatory measures in a single day, marking one of the largest one-day policy overhauls in the central bank’s history.
BUSINESS
RBI Guv Malhotra: Blessed with best inflation, marred by worst INR depreciation
Malhotra, who took charge as RBI Governor on December 11, 2024, has overseen a 5.71% slide in the rupee during his first year in office, marking the Indian currency as the worst performer among its Asian peers.
BUSINESS
Indian benchmark bond yield surges to 6.63%, highest level in current financial year
In the last one week, the bond yields have gone up by around 10 basis points (Bps). This is despite the 25 basis points (Bps) rate cut by the Reserve Bank of India (RBI) in the December monetary policy.
BUSINESS
PSU banks outperform on return: Higher profit, cleaner books fuel 2025 surge
The sharp rally in PSU bank stocks earlier this year cooled off after the government clarified it had no plans to raise the foreign direct investment (FDI) limit in state-run banks from 20 percent to 49 percent.
BUSINESS
Bank of India raises Rs 2,500 crore via 10-year Tier-2 bonds at 7.28% coupon
Market participants said that the coupon set on the bonds is 60-70 basis points higher than the current secondary market yield on the similar tenure government securities.
BUSINESS
Rupee Slide| Fall accelerates, took just 231 days to drop from 85 to 90 levels
The weakness has intensified in recent sessions. On December 3, the rupee slipped past the 90 mark against the US dollar, driven by sustained equity outflows and lingering uncertainty over the proposed India-US trade pact.
