RBI pumps ₹2 lakh crore into banks to keep things running smoothly
The Reserve Bank of India (RBI) is stepping in with a huge cash boost—over ₹2 lakh crore—to make sure banks don't run short on money.
This move comes after some shaky moments in the financial markets, and it's all about keeping loans flowing, interest rates steady, and the rupee stable.
How is RBI doing this?
RBI's plan covers three main steps:
First, a quick ₹25,000 crore loan to banks for 90 days on January 30.
Next up, a $10 billion (about ₹91,000 crore) currency swap on February 4.
And finally, buying government bonds worth ₹1 lakh crore in two rounds—₹50,000 crore each on February 5 and 12.
Why should you care?
If you're wondering why this matters: when RBI acts fast like this, it is expected to support credit flow and ease borrowing costs, and may help stabilize short-term money market rates and manage foreign exchange conditions.
The RBI says they'll keep an eye on things and step in again if needed—to help ensure orderly liquidity conditions.