The Reserve Bank of India has announced a fresh set of measures to ease tight liquidity conditions in the banking system. RBI has unveiled a plan to inject nearly 3 trillion rupees over the coming weeks through a combination of open market operations (OMOs) and a foreign exchange swap. Under the proposed plan, the central bank will purchase government securities worth 2 trillion rupees through OMOs.

 

These purchases will be conducted in four equal tranches of 50 thousand crore rupees each on December 29, January 5, January 12 and January 22. In addition, RBI will undertake a three-year US Dollar/Rupee buy-sell swap of 10 billion dollars on January 13, a move expected to further release rupee liquidity into the banking system.

 

During the recent monetary policy meeting, RBI Governor Sanjay Malhotra had assured markets that the central bank would ensure adequate liquidity in the financial system.

 

He had indicated that liquidity support would continue even without formally targeting a surplus level of around one per cent of net demand and time liabilities. So far in December, RBI has already injected about 1.45 trillion rupees of durable liquidity through a combination of bond purchases and foreign exchange swaps.

 

After a review of current liquidity and financial conditions, the RBI has decided that the government securities purchases will be conducted in four tranches of ₹50,000 crore each, which will be held on December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026.

 

The Dollar Rupee Swap auction will be held on January 13, 2026. The Reserve Bank said it would continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.