The Reserve Bank of India (RBI) has announced significant measures to inject liquidity into the banking system. This includes two Open Market Operation (OMO) purchase auctions of government securities, totalling ₹1,00,000 crore, scheduled for March 12th and 18th, 2025. Additionally, the RBI will conduct a USD 10 billion buy/sell forex swap auction with a 36-month tenor on March 24th, 2025.
On a review of current and evolving liquidity conditions, 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 ₹1,00,000 crore in two tranches of ₹50,000 crore each to be held on March 12, 2025 (Wednesday), and March 18, 2025 (Tuesday).
- USD/INR Buy/Sell Swap auction of USD 10 billion for a tenor of thirty-six months to be held on March 24, 2025 (Monday).
Detailed instructions for each operation shall be issued separately.
The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.
FAQ :
The RBI plans to inject a total of ₹1,00,000 crore through OMO purchase auctions.
The OMO auctions will be held in two tranches: ₹50,000 crore on March 12, 2025, and another ₹50,000 crore on March 18, 2025.
The RBI will conduct a USD 10 billion buy/sell swap auction.
The tenor for the USD/INR Buy/Sell Swap auction is thirty-six months.
The USD/INR Buy/Sell Swap auction is scheduled for March 24, 2025.
These operations are being conducted to inject liquidity into the banking system and manage evolving liquidity conditions.