RBI to Inject Rs 1.25 Trillion Liquidity through Bond Purchases
ECONOMY & POLICY

RBI to Inject Rs 1.25 Trillion Liquidity through Bond Purchases

The Reserve Bank of India (RBI) announced its plan to purchase government bonds worth Rs 1.25 trillion through open market operations (OMOs) in four separate tranches during May, as part of its continued efforts to inject liquidity into the banking system.

According to the schedule, the first tranche amounting to Rs 500 billion is set for May 6, while the remaining three tranches of Rs 250 billion each will take place on May 9, 15, and 19. This move follows the RBI’s liquidity support measures in April, during which it infused Rs 1.2 trillion through debt purchases and foreign exchange swaps. Additionally, the central bank is set to purchase bonds worth Rs 200 billion on Tuesday, marking the final tranche for April.

Earlier in the month, the RBI had also cut the repo rate for the second consecutive time and shifted its policy stance to "accommodative" to further support the economy.

In a press conference held after the monetary policy announcement on April 9, Governor Sanjay Malhotra indicated that the RBI intended to maintain an adequate liquidity surplus in the banking system to facilitate effective transmission of policy rates. He noted that the desired surplus level was around 1 per cent of total deposits, which translates to approximately Rs 2.20 trillion to Rs 2.50 trillion.

As per the RBI’s data, the daily average surplus in the banking system for the week ending April 25 stood at Rs 809 billion, a decline from Rs 1.78 trillion recorded the previous week.

News source: Business Standard

The Reserve Bank of India (RBI) announced its plan to purchase government bonds worth Rs 1.25 trillion through open market operations (OMOs) in four separate tranches during May, as part of its continued efforts to inject liquidity into the banking system. According to the schedule, the first tranche amounting to Rs 500 billion is set for May 6, while the remaining three tranches of Rs 250 billion each will take place on May 9, 15, and 19. This move follows the RBI’s liquidity support measures in April, during which it infused Rs 1.2 trillion through debt purchases and foreign exchange swaps. Additionally, the central bank is set to purchase bonds worth Rs 200 billion on Tuesday, marking the final tranche for April. Earlier in the month, the RBI had also cut the repo rate for the second consecutive time and shifted its policy stance to accommodative to further support the economy. In a press conference held after the monetary policy announcement on April 9, Governor Sanjay Malhotra indicated that the RBI intended to maintain an adequate liquidity surplus in the banking system to facilitate effective transmission of policy rates. He noted that the desired surplus level was around 1 per cent of total deposits, which translates to approximately Rs 2.20 trillion to Rs 2.50 trillion. As per the RBI’s data, the daily average surplus in the banking system for the week ending April 25 stood at Rs 809 billion, a decline from Rs 1.78 trillion recorded the previous week. News source: Business Standard

Next Story
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?