RBI’s Rs 14.6 lakh crore cash shield: Why bond purchases alone won’t save the rupee

The RBI used Rs 8.28 lakh crore in Open Market Operation purchases during FY2025-26 to support liquidity. While these steps helped, external pressures like the West Asia crisis hurt the rupee. The RBI now looks beyond bond buys, focusing on stable foreign currency inflows to manage this difficult balancing act.