The Reserve Bank of India (RBI) on December 23 announced additional measures such as conduct of Open Market Operation (OMO) purchase of governments securities and USD/INR Buy/Sell swap auction to inject durable liquidity to the banking system after review of current liquidity and financial conditions.
The central bank said it will conduct Rs 2 lakh crore OMO purchase auctions of Government of India securities in four tranches of Rs 50,000 crore each. These auctions will take place on December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026, release said.
RBI will also conduct USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 3 years to be held on January 13, 2026, the release added.
This was done after the liquidity in the banking system turned deficit after heavy outflows on account of advance tax and goods and services tax (GST) payments.
Currently, the liquidity in the banking system stood at deficit of around Rs 54,851.83 crore.
The liquidity in the banking system turned deficit on December 17, nearly after two months despite the continuous support provided by the RBI through variable rate repo (VRR) auctions, OMO purchases of government securities and USD/INR Buy/Sell swap auction.
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