RBI announces measures to manage liquidity conditions

Jan 27, 2025

Synopsis
The Reserve Bank of India will conduct operations to inject liquidity into the banking system. These include OMO purchase auctions of ₹60,000 crore in three tranches (Jan 30, Feb 13, and Feb 20, 2025), a 56-day Variable Rate Repo auction for ₹50,000 crore on February 7, 2025, and a USD/INR Buy/Sell Swap auction of USD 5 billion on January 31, 2025.

The Reserve Bank of India, on a review of current liquidity and financial conditions, has decided to conduct a few operations to inject liquidity into the banking system.

Here are the measures announced by India's Central bank:

1.OMO purchase auctions of Government of India securities for an aggregate amount of ₹60,000 crore in three tranches of ₹20,000 crore each to be held on: January 30, 2025, February 13, 2025, February 20, 2025.

2.56-day Variable Rate Repo (VRR) auction for a notified amount of ₹50,000 crore to be held on February 7, 2025.

3.USD/INR Buy/Sell Swap auction of USD 5 billion for a tenor of six months to be held on January 31, 2025.

Detailed instructions for each operation shall be issued separately, said the RBI.

"The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions."

[The Economic Times]