RBI to Inject ₹1 Lakh Crore into Banks: Good News for Common People

• The Reserve Bank of India (RBI) announced plans to inject ₹1 lakh crore into the financial market through government bond purchases.
• Two auctions of ₹50,000 crore each will be conducted on January 29 and February 5, along with a $10 billion dollar-rupee swap auction on February 4.
• Indian banks faced a liquidity shortage due to high loan demand, tax payments (GST), and increased cash withdrawals during the wedding season.
• This intervention is expected to provide banks with sufficient funds, potentially leading to cheaper home and car loans, and stable EMIs.
• Increased liquidity could also boost banking and financial stocks and help stabilize the Indian Rupee against the US Dollar.

Why It Matters: RBI's ₹1 lakh crore injection aims to boost bank liquidity, potentially lowering loan rates and stabilizing the rupee.