Liquidity

Central bank holds additional ₹50,000 crore VRR auction as banks face year-end liquidity pressures, with demand exceeding notified amounts due to balance sheet adjustments

RBI's bond purchases and switch operations are helping banks cushion treasury losses in Q4 despite rising yields driven by global volatility and the West Asia crisis

Central bank rejects all bids at weekly auction, aiming to avoid signalling higher yields and support liquidity ahead of financial year-end

Banking system liquidity slipped into deficit after two months due to tax and GST outflows, though experts expect a return to surplus in early April

Liquidity surplus narrows amid advance tax outflows and GST payments, while muted demand seen in RBI's VRR auctions and short-term borrowing shifts to TREPS market

RBI will purchase Rs 50,000 crore of government bonds through an open market operation auction on Friday as part of its liquidity infusion measures

The Reserve Bank of India (RBI) on Monday injected Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities, according to a release. The Central bank purchased 6.33 per cent GS (Government Security) 2035 bonds worth Rs 13,507 crore, 6.01 per cent GS 2030 worth Rs 13,494 crore, 6.10 per cent GS 2031 of Rs 8,157 crore, 7.30 per cent GS 2053 of Rs 6,955 crore, 7.18 per cent GS 2033 worth Rs 4,479 crore, 6.92 per cent GS 2039 of Rs 2,304 crore, and 6.19 per cent GS 2034 of Rs 1,104 crore, it said. The liquidity in the banking system, currently, is estimated to be in surplus of around Rs 2.41 lakh crore. The OMO purchase auction was announced ahead of expected heavy outflows from the banking system due to advance tax and Goods and Services Tax (GST) payments scheduled later this month. This comes even as liquidity conditions in the banking system currently remain in a significant surplus of Rs 3.02 lakh crore. As per RBI data, it has

The RBI has announced Rs 1 trillion in OMO purchases to cushion tightening from advance tax outflows, even as broader pressures on durable liquidity persist due to forex interventions

Three-year dollar-rupee swap draws $25 billion in bids against $10 billion on offer

Rising credit-deposit ratios are straining bank liquidity even as RBI data shows NPAs falling largely due to write-offs, not recoveries

After months of stress, India's microfinance sector is showing early signs of recovery, with industry leaders saying the worst is over as liquidity improves

For India to finance sustained growth, it must strengthen long-term capital markets as bond market currently is shallow, illiquid

Despite a cumulative 125 basis point cut in the repo rate and record liquidity injections of about Rs 6.6 trillion during the current financial year, yields remained elevated

OMOs will involve the purchase of Government of India securities worth ₹1 trillion in two tranches of ₹50,000 crore each on February 5 and February 12

Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range

The RBI has announced liquidity infusion of nearly ₹3 trillion into the banking system.

RBI announced ₹2 trillion of OMO purchases and a three-year $10 billion USD/INR buy-sell swap, triggering the sharpest bond market rally since April 2

Outstanding CD issuance tops record ₹5.7 trn during the period

Economists expect the RBI’s Monetary Policy Committee to maintain the status quo on interest rates in the December review. With growth strong and inflation low

The RBI's VRR operations are intended to infuse liquidity into the financial system and anchor short-term money market rates closer to the policy repo rate