Overview
- Governor Sanjay Malhotra announced the measures at the Monetary Policy Committee outcome to ensure sufficient banking-system funds.
- Both operations will be executed this month as durable injections, with any short-term swings managed separately through LAF tools such as VRR/VRRR.
- The RBI clarified that OMOs and buy–sell swaps add lasting liquidity, while repo operations target transient conditions to align the weighted average call rate with policy.
- Officials reported an average surplus of about Rs 1.5 lakh crore since the October MPC, with LAF net absorption at Rs 2.6 lakh crore on December 3.
- The central bank stressed that these liquidity steps are not meant to directly steer government bond yields and reiterated the primacy of the policy repo rate.