RBI announces measures to manage liquidity conditions

ANI March 5, 2025 313 views

The Reserve Bank of India has unveiled a comprehensive strategy to inject significant liquidity into the banking system. Through carefully planned Open Market Operations, the RBI will purchase government securities worth ₹100,000 crore in two installments. Additionally, a USD/INR swap auction of $10 billion is scheduled to further stabilize market conditions. These strategic interventions demonstrate the central bank's proactive approach to managing financial system dynamics.

"We will continue to monitor evolving liquidity and market conditions" - RBI Statement
Mumbai, March 4: The Reserve Bank of India (RBI) on Wednesday said that it will infuse liquidity through Open Market Operations (OMO) purchases and USD/INR Buy/Sell swap auctions.

Key Points

1

RBI to conduct ₹100,000 crore government securities purchase in two tranches

2

USD/INR swap auction of $10 billion planned for March 24

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Central bank aims to ensure orderly liquidity conditions

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Detailed instructions to be issued separately

The Reserve Bank has decided to conduct the following operations to inject liquidity into the banking system:

OMO purchase auctions of Government of India securities for an aggregate amount of Rs 100,000 crore in two tranches of Rs 50,000 crore each to be held on March 12, 2025 (Wednesday), and March 18, 2025 (Tuesday).

The USD/INR Buy/Sell Swap auction of USD 10 billion for a tenor of thirty-six months is to be held on March 24, 2025 (Monday).

"Detailed instructions for each operation shall be issued separately," said the central bank in a statement.

The Reserve Bank said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.

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Tags:
RBI Liquidity Management Banking Sector Monetary Policy Open Market Operations Forex Swap
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