RBI Resumes Bond Purchases, Injects Rs 12,470 Crore Liquidity

Imagine the Reserve Bank of India (RBI) is like a gardener for the country's money.

Sometimes, the gardener needs to add more water (liquidity) to help the plants (banks) grow.

After not doing it for about half a year, the RBI started buying back some of the government's IOUs (bonds) again.

They bought Rs 12,470 crore worth of these bonds.

This is a way for the RBI to put more money into the banking system.

They do this to help manage how much money is available and keep interest rates stable, which is part of their plan for the economy.

Even though they bought bonds, the price of the Indian rupee against the US dollar went down a little.

Some people think the RBI might do more of this or have special sales of bonds later on.

It's like the gardener is checking on the plants and deciding how to best help them.