RBI Announces Key Measures to Infuse Liquidity into Banking System
The Reserve Bank of India (RBI) has announced a series of measures to inject substantial liquidity into the domestic banking system. These steps include the purchase of government securities through open market operations and conducting dollar-rupee swap auctions. Over the next month, RBI aims to make a total of ₹1.9 lakh crore available to banks through these initiatives.
On February 28, 2025, the central bank conducted a dollar-rupee swap auction worth $10 billion to enhance liquidity. Continuing its efforts, RBI has now decided to purchase government securities worth ₹1 lakh crore through open market operations. These purchases will be carried out in two tranches of ₹50,000 crore each on March 12 and March 18.
Additionally, RBI has scheduled another $10 billion USD-INR buy/sell swap auction on March 24 to further manage liquidity conditions. The central bank has assured that it will continuously monitor cash availability and take necessary measures in response to market conditions.