RBI just dropped ₹2 lakh crore into the banking system—here's why it matters

Business Dec 23, 2025

India's central bank, the RBI, is injecting a massive ₹2 lakh crore ($32 billion) into banks to fix a cash crunch caused by big tax and GST payments recently.
This move is all about keeping money flowing smoothly in the economy and making sure interest rates don't get out of hand.

How they're doing it (and what's next)

The RBI will buy government bonds in four rounds—on December 29, January 5, January 12, and January 22—each worth ₹50,000 crore.
Plus, there's a $10 billion currency swap planned for January 13, 2026, to add even more rupee liquidity in a way that temporarily uses, but does not permanently reduce, India's forex reserves.
All these steps are meant to keep things stable for everyone, from banks to regular people who just want loans at decent rates.