The Reserve Bank of India (RBI) infused ₹50,000 crore into the banking system on Thursday through Open Market Operation (OMO) purchases of government securities, reinforcing its commitment to ensuring adequate liquidity in the financial markets. The central bank had notified an OMO purchase of ₹50,000 crore; however, the auction witnessed strong demand with total bids touching ₹1,11,615 crore, more than double the notified amount.

This liquidity injection forms part of a larger ₹1 lakh crore OMO purchase programme announced earlier this month. The RBI had scheduled two tranches of ₹50,000 crore each, to be conducted on December 11 and December 18, 2025. Such measures are typically undertaken to ease liquidity pressures, support credit flow, and maintain orderly conditions in the government securities market.

With the year-end approaching and liquidity conditions turning tighter due to factors like currency leakage and advance tax outflows, the RBI’s intervention is expected to provide much-needed relief to banks. Market participants view this move as a sign of the central bank’s proactive approach in managing liquidity and stabilising short-term interest rates.

The second tranche of OMO purchases will be carried out next week, which is likely to further bolster liquidity and ensure smoother financial operations across the banking sector.