The Reserve Bank of India (RBI) has revealed a fresh set of liquidity-boosting measures to maintain sufficient and lasting liquidity in the banking sector, after assessing the current financial situation. Under this initiative, the central bank will engage in Open Market Operations (OMOs) to acquire Government of India securities valued at Rs. 2 lakh crore (US$22.30 billion). These acquisitions will be executed in four instalments of Rs. 50,000 crore (USUS$5.57 billion) each, planned for December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026. The initiative seeks to enhance liquidity, facilitate credit distributions, and uphold stable market conditions, particularly amid seasonal cash withdrawals. Besides OMOs, the RBI will carry out a USD/INR Buy/Sell Swap auction for US$10llion with a three-year tenor on January 13, 2026, further enhancing the system's lasting liquidity. These proactive measures come after a short-term liquidity shortfall resulting from advance tax and goods and services tax (GST) payments, which resulted in increased cash outflows from the banking system. Currently, system liquidity is in a shortfall of approximately Rs. 54,851.83 crore (USD 6.11 billion). Despite this immediate pressure, the RBI has reliably backed liquidity via variable rate repo (VRR) auctions, OMO acquisitions, and forex swap activities. The new measures highlight the central bank’s dedication to upholding financial stability, facilitating effective transmission of monetary policy, and creating a favourable atmosphere for economic activity. Through the use of a mix of domestic and foreign exchange liquidity instruments, the RBI consistently shows flexibility and preparedness in tackling changing market demands while bolstering trust in India’s financial framework.