RBI to inject Rs 2.90k cr liquidity via securities purchase, swap auction, Pg15

Key Highlights:

• The Reserve Bank of India (RBI) will inject Rs 2.90 lakh crore into the banking system.
• Rs 2 lakh crore will be injected through Open Market Operations (OMO) via government securities purchase.
• A US dollar-rupee buy-sell swap auction of $10 billion (Rs 90,000 crore) is planned for January 13, 2026.
• The OMO purchase auctions will be conducted in four tranches of Rs 50,000 crore each.

Detailed Insights:

• The RBI aims to ensure orderly liquidity conditions in the market through these measures.
• OMO involves the purchase and sale of government securities by the RBI to regulate money supply.
• The US dollar-rupee buy-sell swap helps manage foreign exchange reserves and liquidity in the banking system.
• These measures are intended to stabilize the financial system and support economic growth.

Key Concepts Involved:

• Open Market Operations (OMO): Buying or selling of government securities by the RBI to control money supply.
• Liquidity: The availability of cash or assets that can be quickly converted to cash in the financial system.
• Buy-Sell Swap: An agreement to exchange one currency for another and then reverse the exchange at a later date.