Reserve Bank Injects Rs 2 Lakh Crore to Boost Liquidity

The Reserve Bank plans to inject over Rs 2 lakh crore into the financial system through various measures including a 90-day Variable Rate Repo operation and a USD/INR swap auction. Government bonds worth Rs 1 lakh crore will also be purchased to enhance liquidity.

The Reserve Bank announced a substantial liquidity injection into the financial system, with plans to introduce over Rs 2 lakh crore through several mechanisms.

A statement revealed that a 90-day Variable Rate Repo (VRR) operation for Rs 25,000 crore will occur on January 30, 2026, alongside a USD/INR buy-sell swap auction worth USD 10 billion (about Rs 91,000 crore) slated for February 4, 2026.

Additionally, the central bank will purchase Rs 1 lakh crore in government bonds via open market operations, with Rs 50,000 crore buys scheduled for February 5 and 12, as it pledges to monitor and respond to liquidity conditions proactively.