RBI To Inject Rs 2.15 Lakh Cr Liquidity Via VRR, Forex Swap & OMO Purchases

(MENAFN- KNN India) New Delhi, Jan 24 (KNN) The Reserve Bank of India (RBI) on Friday announced measures to inject around Rs 2.15 lakh crore into the banking system between January 30 and February 12, 2026.

The steps come ahead of the financial year-end, when credit demand usually increases, and amid marginal surplus liquidity conditions.

The RBI said the measures are based on a review of current liquidity and financial conditions and are aimed at ensuring smooth market functioning.

The central bank will conduct a 90-day Variable Rate Repo (VRR) auction of Rs 25,000 crore on January 30, 2026. This is the first time the RBI is offering a VRR with a 90-day maturity; earlier, the longest tenure was 56 days.

It will also hold a USD/INR buy–sell swap auction of USD 10 billion for a three-year period on February 4, 2026. This move is expected to inject about Rs 90,000 crore of long-term liquidity into the system.

In addition, the RBI will carry out open market operation (OMO) purchases of government securities worth Rs 1 lakh crore. The purchases will be done in two parts of Rs 50,000 crore each on February 5 and February 12, 2026.

The central bank said separate guidelines will be issued for each operation.

This is the third time in about a month that the RBI has announced durable liquidity support, using a mix of VRR auctions, forex swaps and OMO purchases.

Under the USD/INR swap, banks will sell dollars to the RBI and receive rupees in the first leg. After three years, they will return the rupees along with a swap premium to get the dollars back.

(KNN Bureau)

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