Reserve Bank of India (RBI) has recently announced an investment of Rs 2.9 lakh crore (about $32 billion) to increase liquidity or cash flow in the banking system.
Reserve Bank of India announced this major decision on December 23, 2025. Recently, there was a slight shortage of cash in banks due to tax payments and festivals. To overcome this crisis, the RBI is injecting new money into the market. One of its objectives is to reduce the yield on bonds and keep the price of government securities stable.
This liquidity support is expected to maintain the value of the rupee against the dollar and reduce volatility in the currency market.
