RBI Infuses Rs 2 Lakh Crore Liquidity to Combat Deficit

• RBI announced measures on December 23 to inject Rs 2 lakh crore into the banking system.
• This move comes as banking system liquidity turned deficit, currently at Rs 54,851.83 crore, due to advance tax and GST payments.
• Measures include OMO purchase of Government of India securities worth Rs 2 lakh crore in four tranches (Rs 50,000 crore each) on specific dates in late 2025 and early 2026.
• A USD/INR Buy/Sell Swap auction of $10 billion for a 3-year tenor will also be conducted on January 13, 2026.
• Liquidity deficit emerged on December 17, despite prior RBI support through VRR auctions and OMOs.

Why It Matters: RBI acts to restore banking system liquidity with Rs 2 lakh crore infusion and a $10 billion forex swap.