RBI Unveils Multi-pronged Strategy to Boost Banking System Liquidity

• The Reserve Bank of India (RBI) announced a series of measures to inject liquidity into the banking system.
• A 90-day Variable Rate Repo (VRR) operation for Rs 25,000 crore is scheduled for January 30, 2026.
• A USD/INR buy/sell swap auction of USD 10 billion for a 3-year tenor will take place on February 04, 2026.
• Two Open Market Operation (OMO) purchase auctions of Government of India securities, each for Rs 50,000 crore (total Rs 1,00,000 crore), are set for February 05 and February 12, 2026.
• RBI will continue to monitor liquidity and market conditions, taking further measures as needed.

Why It Matters: RBI implements diverse operations to inject significant liquidity into the banking system.