Archive · 11 Dec 2025
RBI boosts liquidity with ₹50,000 crore bond purchase
The Reserve Bank of India (RBI) bought ₹50,000 crore worth of bonds to help banks have more money to lend.
This is part of their plan to add ₹1 trillion to the system.
The Indian rupee hit a record low against the dollar, partly because of problems with trade talks with the U.S. and less money coming into the country from foreign investors.
The RBI is trying to help by buying bonds, but some people think the rupee might keep getting weaker.
The RBI is also waiting for a trade deal with the U.S. to help fix some of these problems.
The rupee's value is very important because it affects how much things cost in India and how much money businesses can make.
RBI purchased ₹50,000 crore worth of bonds to boost liquidity in the banking system.
The rupee hit a record low of 90.4675 against the dollar due to trade tensions and foreign investment outflows.
RBI's liquidity injection plan includes ₹1 trillion via bond purchases and $5 billion via FX swaps.
Foreign investors have sold $18 billion worth of Indian stocks in 2025.
The RBI intervened mildly to slow the rupee's decline but will tolerate a weaker rupee due to external sector headwinds.
- Who
- Reserve Bank of India (RBI)
- What
- Purchased ₹50,000 crore worth of bonds to boost liquidity
- When
- December 11, 2025
- Where
- India
- Why
- To boost liquidity in the banking system and cap rising market interest rates
Market Optimists
Market Pessimists
Rupee Performance
Market Optimists
The rupee's decline is temporary and will stabilize with RBI intervention and potential trade deal breakthroughs.
Market Pessimists
The rupee will continue to weaken due to persistent trade deficits and lack of significant foreign investment.
Liquidity Injection
Market Optimists
The RBI's liquidity injection will effectively cap rising market interest rates and support economic stability.
Market Pessimists
The liquidity measures may not be sufficient to offset the severe balance of payments pressures and FX operations.
- Amount Purchased
- ₹50,000 crore
- Yield Impact
- Yields fell after auction results
- Liquidity Injection Plan
- ₹1 trillion via bond purchase and $5 billion via FX swap
- Rupee Performance
- Down over 5% YTD, record low at 90.4675
- Foreign Investment
- $18 billion sold from Indian stocks in 2025
- RBI Intervention
- Mild intervention to slow rupee fall
- Trade Deficit
- Record October goods trade deficit
- Expected Trade Deal
- Expected by March 2026
