RBI Injects ₹50,000 Crore Liquidity via OMO Purchase Auction on December 29

On December 29, 2025, the Reserve Bank of India (RBI) conducted an Open Market Operation (OMO) purchase auction to infuse ₹50,000 crore into the banking system. This action is part of the central bank’s broader efforts to address liquidity shortages stemming from tax outflows. 

RBI Conducts ₹50,000 Crore OMO Purchase Auction 

RBI purchased multiple government securities with varying maturities during the auction. These included ₹10,320 crore worth of 6.79% GS 2029, ₹13,733 crore of 7.61% GS 2030, ₹9,443 crore of 7.26% GS 2033, ₹7,253 crore of 6.79% GS 2034, ₹5,505 crore of 6.67% GS 2035, and ₹3,746 crore of 7.30% GS 2053. The total value of the purchases was ₹50,000 crore. 

However, the RBI did not accept any bids for the 7.18% GS 2037 bond during this round of auction. 

Reason Behind the Liquidity Injection 

The move comes in response to a liquidity deficit in the banking system, which stood at around ₹62,301.77 crore. This shortfall was attributed to substantial outflows related to advance tax and Goods and Services Tax (GST) payments that had recently occurred. 

Series of Liquidity Measures Announced 

Prior to this, on December 23, 2025, RBI had announced a 4-part OMO purchase plan involving Government of India securities. Each tranche will involve ₹50,000 crore, scheduled on December 29, 2025, January 5, 2026, January 12, 2026, and January 22, 2026. 

Read More: RBI Defers January 3 Deadline for 3-Hour Cheque Settlement! 

Additional USD/INR Swap Auction Planned 

In addition to OMO, the RBI will conduct a USD/INR Buy/Sell Swap auction worth $10 billion with a 3-year tenure on January 13, 2026. This will supplement the liquidity measures currently being implemented via government bond purchases. 

Conclusion 

Through the OMO purchase auction on December 29, 2025, RBI infused ₹50,000 crore into the financial system to support liquidity, backed by a sequence of measures that also includes an upcoming USD/INR swap. These steps were taken in response to a reported cash deficit caused by tax-related outflows. 

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