RBI Announces Liquidity Boost of Over Rs. 2 Lakh Crore for Banking System

The Reserve Bank of India (RBI) on Friday unveiled a set of liquidity-boosting measures aimed at infusing more than $23 billion (around ₹2 lakh crore) into the banking system, after reviewing the prevailing liquidity and broader financial conditions.

To support liquidity in the financial markets, the central bank will deploy a mix of open market bond purchases, a foreign exchange swap, and a variable rate repo (VRR) operation.

As part of this plan, the RBI will conduct a 90-day VRR auction worth ₹25,000 crore on January 30, 2026, enabling banks to borrow funds at market-linked interest rates by pledging eligible collateral.