RBI Announces Major Liquidity Boost

In a significant move to ensure financial stability, the Reserve Bank of India (RBI) has announced a plan to inject Rs 1.9 lakh crore into the banking system. This will be achieved through open market purchases of government securities and USD/INR swaps scheduled for March.

Open Market Operations and Forex Swaps

The central bank will conduct open market operation (OMO) purchase auctions of government securities worth Rs 1 lakh crore in two tranches. Additionally, a USD/INR Buy/Sell Swap auction worth $10 billion with a 36-month tenor is set to further inject liquidity into the system.

Ensuring Financial Stability

The RBI has assured that it will continue to monitor liquidity and market conditions closely. Further measures will be taken as needed to maintain financial stability and support the economy.