On January 27, 2025, the RBI announced a plan to inject Rs 1.1 lakh crore into the banking system via open market purchases of securities, a variable rate repo auction, and a $5 billion dollar-rupee swap auction. The RBI will purchase Rs 60,000 crore in government securities in three tranches (Jan 30, Feb 13, Feb 20). A Rs 50,000 crore repo auction is scheduled for Feb 7, and a $5 billion swap auction on Jan 31.
Liquidity remains tight with a deficit of over Rs 3 lakh crore. The RBI also introduced new liquidity coverage norms requiring banks to set aside funds for risks, especially due to mobile and internet banking usage. Banks are concerned these norms may impact credit growth.
This initiative is under the tenure of RBI Governor Sanjay Malhotra, who succeeded Shaktikanta Das in December.