Aspirant Academy

RAS question

How much total liquidity did RBI inject through Open Market Operations (OMO) purchases in December 2025?

Correct answer: (A) ₹1 lakh crore.

In December 2025, RBI injected ₹1 lakh crore through OMO purchases, split into two ₹50,000 crore tranches scheduled for December 11 and December 18.

  1. (A)

    ₹1 lakh crore

  2. (B)

    ₹50,000 crore

  3. (C)

    ₹2 lakh crore

  4. (D)

    ₹75,000 crore

Explanation

RBI's December 2025 liquidity package announced OMO purchase auctions of Government of India securities for an aggregate ₹1,00,000 crore. The amount came in two equal tranches: ₹50,000 crore on December 11, 2025, and ₹50,000 crore on December 18, 2025. Adding the two tranches gives ₹1 lakh crore, so the OMO component was not a single ₹50,000 crore operation. The same RBI release also placed this within a wider liquidity response, alongside a USD/INR Buy/Sell Swap auction of USD 5 billion on December 16, and these measures complemented the December 2025 repo-rate cut to 5.25%.

Why the other options are wrong

  • (B) ₹50,000 crore was only one OMO purchase tranche; RBI announced two such tranches in December 2025.
  • (C) ₹2 lakh crore doubles the announced aggregate, because the two ₹50,000 crore tranches total ₹1 lakh crore.
  • (D) ₹75,000 crore does not follow from RBI's tranche schedule, which was ₹50,000 crore plus ₹50,000 crore.

Concept

This tests RBI liquidity-management instruments, especially how Open Market Operation purchase announcements translate into system liquidity. It recurs in RAS-style economy practice because candidates must connect policy instruments with their quantified liquidity effect.

Source

Related questions