RBI likely to inject ₹5 lakh crore in FY27: Economists
Economists expect the Reserve Bank of India (RBI) will infuse at least ₹5 lakh crore into the financial system via liquidity operations in the next fiscal year (FY27), hoping to keep things steady as total issuances from the Centre, states and companies are estimated at a minimum of ₹40 lakh crore.
Economists say this should help lower borrowing costs and keep bond markets calm.
RBI's recent liquidity infusions
Lately, RBI has been busy — it has bought back ₹6.88 lakh crore so far in FY26 through open market operations.
It also ran special auctions for banks, putting another ₹1.35 lakh crore into play.
Need to maintain core liquidity surplus
After all these moves, there's been a noticeable surplus of cash in the system—standing at a daily average of ₹2.66 lakh crore in February so far.
Experts like Madhavi Arora believe RBI will need to keep up these efforts in FY27, especially with states under fiscal pressure.
By March 2027, the RBI may need to ensure the core liquidity surplus does not dip below 1% of NDTL.