The Reserve Bank of India has unveiled a major liquidity infusion plan for December 2025. This decisive move aims to ease financial pressures and stabilize market conditions. The central bank is deploying two powerful tools to ensure the system remains flush with funds.
A total of Rs 1 lakh crore will be injected through Open Market Operations. The RBI will conduct two separate purchase auctions of government securities. Each auction is valued at a substantial Rs 50,000 crore.
The dates for these operations are set for December 11 and December 18. This significant liquidity infusion is designed to address potential tightness. The central bank is proactively managing the financial landscape.
In a parallel move, the RBI will also execute a forex swap. This involves a USD/INR Buy/Sell Swap auction of USD 5 billion. The swap carries a three-year tenor and is scheduled for December 16.
Combined, these actions represent a robust liquidity support package. The RBI emphasized it will continue monitoring conditions closely. The goal is to ensure the orderly functioning of all markets.
The OMO purchases will follow a specific auction method. They will be conducted using the multiple price approach. Importantly, there is no security-wise notified amount for the auctions.
This means the Rs 1 lakh crore ceiling applies collectively across all securities. The RBI has identified seven government bonds for potential purchase. These securities have maturity dates ranging from 2029 all the way to 2050.
The list includes the 6.75 per cent GS 2029 and the 7.02 per cent GS 2031. Also featured are the 7.26 per cent GS 2032 and the 6.79 per cent GS 2034. The 7.54 per cent GS 2036, 6.92 per cent GS 2039, and 6.67 per cent GS 2050 round out the selection.
The central bank retains full operational discretion throughout the process. It can determine the purchase quantum for each individual security. It also reserves the right to accept bids for less than the total aggregate amount.
Furthermore, the RBI may purchase slightly more or less due to rounding. It can accept or reject any bids without providing a reason. This flexibility is standard for such monetary operations.
Eligible participants must submit their bids electronically. The designated platform is the RBI’s E-Kuber system. The bidding window is strictly between 9:30 a.m. and 10:30 a.m. on December 11.
Physical bids are only permitted in cases of system failure. Any physical submissions must reach the Financial Markets Operations Department before the deadline. The process is designed to be efficient and transparent.
The auction results will be announced on the same day, December 11. Successful bidders have a clear obligation to fulfill. They must ensure the requisite securities are in their SGL accounts by 12 noon on December 12.
This announcement highlights the RBI’s ongoing strategy. Open Market Operations remain a key instrument for liquidity management. The central bank is committed to maintaining orderly conditions in the government securities market.
The detailed operational guidelines will be issued separately. Market participants should watch for this follow-up communication. These steps collectively underscore a proactive approach to financial stability.