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Mumbai, 28 January 2026: Many major steps have been taken by the Reserve Bank of India (RBI) during the financial year to increase liquidity in the economy, yet the results have not been as expected. According to the report released by SBI Research on Wednesday, under open market operation, approximately Rs. Despite injecting Rs 6.6 lakh crore into the market, interest rates on government bonds and other investment instruments have not decreased as expected.

According to the report, despite huge amount of cash being injected into the market, its impact is not visible equally in all sectors. This situation is characterized in the report as ‘uneven transmission’, as interest rates have fallen in some sectors while they have remained very limited in others. According to SBI Research, this current open market operation is the largest experiment in monetary policy history so far. If factors like cash flow through CRR and currency leakage are also added to it, the total amount would be approximately Rs. Liquidity worth Rs 5.5 lakh crore has been made available in the market.

Chief Economic Advisor of SBI Group, Dr. According to Soumya Kanti Ghosh, the lending rates of banks have decreased sharply. For this reason, big companies are now preferring to take loans from banks instead of collecting funds through bonds from the market. This trend is especially seen in corporate companies with good ratings. The report mentions that about 65% of banks’ loan portfolios are linked to external benchmark lending rates. Due to this, the effect of RBI’s interest rate reduction has been quickly seen. The average interest rate on new loans has come down to 8.71 percent in November 2025, which is an estimated 62 bps decline in 2025.

The disparity in interest rates on State Development Loans is more pronounced. The average interest rate on state loans between April and December 2025 was 7.16 percent, which is only 0.07 percent less than last year. Money market interest rates have increased from August 2025. Even in December the interest rates were higher than in November. The yield of 10-year AAA corporate bond, which had fallen till June, has started increasing again. It has been suggested in the report that RBI should conduct Open Market Operation (OMO) in such bonds which are heavily traded. This will give a clear signal to the market and increase the confidence of investors. Additionally, RBI’s decision to prematurely withdraw the 90-day repo loan is rare globally, which shows that RBI is experimenting with liquidity management.

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