RBI pumps ₹1.25 lakh crore into banks to keep things running smoothly
The Reserve Bank of India (RBI) just announced it's adding ₹1.25 lakh crore to the banking system, hoping to make money flow a bit easier while the RBI maintains a tight stance on inflation.
This fresh cash will reach banks through a mix of longer-term loans, dollar swaps, and government bond purchases—basically giving banks more breathing room.
How RBI is making it happen
To kick things off, RBI is offering a 90-day loan window worth ₹25,000 crore so banks can borrow for longer stretches.
There's also a $10 billion dollar-rupee swap lined up for February 4 to help steady the currency market.
Plus, two big auctions in early February will inject another ₹1 lakh crore into government bonds—all part of RBI's plan to keep markets stable and react quickly if things get bumpy.