RBI Unveils ₹2 Lakh Cr OMO, $10 Bn FX Swap to Boost Liquidity

• RBI announced ₹2 lakh crore OMO bond purchases and a $10 billion USD/INR FX swap.
• Measures aim to inject durable liquidity into the banking system and stabilize funding conditions.
• Banking system liquidity is in a deficit of ₹54,852 crore due to advance tax and GST payments.
• OMO purchases of Government of India securities will occur in four tranches by January 22.
• Expected to cool bond yields and offset impact of dollar sales to support the rupee.

Why It Matters: RBI injects ₹2 lakh crore via OMO and $10 billion via FX swap to counter liquidity deficit.