NEW DELHI: The Reserve Bank of India (RBI) announced on Wednesday its plan to infuse Rs 1.9 lakh crore into the banking system through open market purchases of government securities and USD/INR swaps in March.
Following a review of liquidity conditions, the central bank will conduct open market operation (OMO) purchase auctions of government securities worth Rs 1 lakh crore in two tranches of Rs 50,000 crore each, scheduled for March 12 and March 18.
Additionally, a USD/INR Buy/Sell Swap auction worth $10 billion with a 36-month tenor is set for March 24 to further inject liquidity.
RBI had earlier conducted a $10 billion dollar-rupee swap on February 28, to inject long-term liquidity into the system, which received strong demand.
The central bank assured continued monitoring of liquidity and market conditions, with further measures as needed to maintain financial stability.
