RBI Injects ₹50,000 Cr into Banking System via OMO Auction

• RBI infused ₹50,000 crore into the banking system on December 29 through an Open Market Operation (OMO) purchase of Government of India securities.
• This is the first of four ₹50,000 crore tranches, part of a larger ₹2 lakh crore OMO purchase plan announced on December 23.
• The central bank purchased various GS bonds, including 6.79% GS 2029 and 7.61% GS 2030, but rejected bids for 7.18% GS 2037 bonds.
• The action aims to inject durable liquidity, as the banking system faces a deficit of ₹62,301.77 crore due to advance tax and GST outflows.
• RBI also plans a $10 billion USD/INR Buy/Sell Swap auction on January 13, 2026, to further address liquidity.

Why It Matters: RBI injects ₹50,000 crore via OMO to boost banking system liquidity amid deficit.