The Reserve Bank of India (RBI) has announced a series of liquidity operations aimed at managing prevailing financial conditions and injecting liquidity into the banking system. These measures were outlined following a review of the current liquidity environment.
The key initiatives include:
- Open Market Operations (OMO): The RBI will conduct OMO purchase auctions of Government of India securities totaling ₹60,000 crore. The auctions will be held in three tranches of ₹20,000 crore each on January 30, February 13, and February 20, 2025.
- Variable Rate Repo (VRR): A 56-day VRR auction for ₹50,000 crore is scheduled for February 7, 2025, to further enhance liquidity.
- USD/INR Swap Auction: The central bank will conduct a USD/INR Buy/Sell Swap auction of USD 5 billion for a six-month tenor on January 31, 2025.
Detailed instructions for each operation will be issued by the RBI separately.
“The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions,” stated the central bank.
These steps are part of RBI’s broader effort to maintain stability in the financial system while supporting market needs effectively.
TOPICS:
RBI