RBI to pump ₹1.25L cr into banks—here's why it matters
The Reserve Bank of India (RBI) is stepping in with a big ₹1.25 lakh crore boost for the banking system, hoping to calm things down after rising bond yields and pressure on the rupee.
This move includes letting banks borrow more easily and swapping dollars for rupees, all to keep money flowing smoothly.
What's actually happening?
First up, there's a special auction on January 30 where banks can borrow ₹25,000 crore at market rates for 90 days—think of it as a short-term financial breather.
Then, on February 4, the RBI will swap $10 billion for rupees, adding about ₹90,000 crore into the system.
Plus, they're buying ₹1 lakh crore worth of government bonds in early February to further steady things.
Why should you care?
All this means borrowing could get cheaper and loans might be easier to get—good news if you're thinking about that student loan or personal finance plans.
The RBI is basically making sure there's enough cash around so banks don't tighten up lending or hike rates unexpectedly.
It's a behind-the-scenes move that could help keep your financial options open this year.