The Reserve Bank of India announced it will add liquidity to the banking system by buying ₹2 lakh crore in government bonds and conducting a $10 billion swap of dollars and rupees.
The central bank said these actions will take place from December 29, 2025, to January 22, 2026, to ensure banks have enough money amid changing market conditions.
RBI said, “On a review of current liquidity and financial conditions, the Reserve Bank of India has decided to conduct Open Market Operations (OMO) purchases and a USD/INR buy-sell swap to inject liquidity into the banking system.”
The government will sell ₹2,00,000 crore in bonds in four steps of ₹50,000 crore each. These sales will take place on December 29, 2025, and on January 5, 12, and 22, 2026.
Additionally, the RBI will conduct a USD/INR buy-sell swap auction of $10 billion with a three-year tenor on January 13, 2026. In this swap, banks will sell US dollars to the RBI and agree in advance to repurchase the same amount at the end of the three-year period, effectively injecting rupee liquidity while temporarily exchanging US dollar reserves.
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The central bank will continue to monitor liquidity and financial market conditions and, as required, take further steps to maintain orderly system liquidity.
