The Reserve Bank of India (RBI) announced and executed Open Market Operations (OMO) purchases totalling ₹1 lakh crore in December 2025 to inject liquidity into the banking system. The purchases were conducted in two tranches of ₹50,000 crore each — the first on December 11 and the second on December 18, 2025.

Open Market Operations are a key monetary policy tool through which the RBI buys government securities from banks, thereby releasing rupee liquidity into the system. When the RBI buys securities, banks receive cash, which they can then deploy as loans to businesses and individuals, thereby stimulating economic activity.

The December OMO purchases come as a supplement to the monetary easing cycle already underway. The RBI MPC had cut the repo rate by 25 basis points to 5.25% on December 3-5, 2025. The OMO purchases complement the rate cut by addressing the liquidity side of monetary transmission — ensuring that lower rates actually reach borrowers through an adequately liquid banking system.

Additionally, the RBI conducted a USD/INR Buy-Sell Swap of $5 billion on December 16, 2025, which further injected rupee liquidity into the system while simultaneously providing dollar liquidity through the swap mechanism. These coordinated interventions reflect the RBI's intent to support credit growth, moderate borrowing costs, and manage the rupee's exchange rate in a volatile global environment.

Analysts noted that the combination of rate cuts, OMO purchases, and currency swaps represents the most aggressive monetary easing by the RBI since 2020, driven by a combination of below-target inflation (around 2.2%) and a desire to support the 8% GDP growth trajectory.