RBI to infuse liquidity through OMO purchase, rupee-dollar swaps auctions
The Reserve Bank of India (RBI) has come up with more measures including the purchase of government bonds under open market operations (OMO) and foreign currency swaps, with an aim to ease the tight liquidity conditions in the banking system.
The RBI’s decision to inject liquidity into the banking system has been taken on a review of current and evolving liquidity conditions. As part of the measures, the RBI will conduct OMO purchase auctions of Government of India securities for an aggregate amount of Rs 1,00,000 crore in two tranches of Rs 50,000 crore each to be held on March 12, 2025 and March 18, 2025.
The central bank will also conduct USD/INR Buy/Sell Swap auction of $10 billion for a tenor of thirty-six months to be held on March 24, 2025. The RBI further noted that it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.
