Mumbai: India's central bank will infuse a record Rs. 2.50 trillion ($28.85 billion) into the banking system through an overnight infusion on Wednesday.

This infusion comes after the RBI's aggressive intervention in the foreign exchange market in the last two sessions. The RBI sold $4-7 billion on Monday to support the rupee.

The banking system liquidity deficit quadrupled to around Rs. 2 trillion as on February 10 due to tax outflows and the RBI's dollar sales.