
The Reserve Bank of India (RBI) has announced a series of measures to manage liquidity and support financial market stability. Following a review of the prevailing liquidity and financial conditions, the central bank has outlined key operations aimed at injecting liquidity into the banking system.
Key measures include:
- Open Market Operations (OMO): The RBI will conduct purchase auctions of Government of India securities amounting to ₹60,000 crore. These will be executed in three tranches of ₹20,000 crore each on January 30, 2025, February 13, 2025, and February 20, 2025.
- Variable Rate Repo (VRR) Auction: A 56-day VRR auction for a notified amount of ₹50,000 crore is scheduled for February 7, 2025, to further infuse liquidity into the system.
- USD/INR Buy/Sell Swap Auction: A USD/INR Buy/Sell Swap auction for USD 5 billion with a tenor of six months will be conducted on January 31, 2025.
The RBI has stated that detailed instructions for each of these operations will be issued separately. The central bank reiterated its commitment to monitoring evolving liquidity and market conditions and taking appropriate measures to ensure orderly market functioning.