RBI's Bold Liquidity Boost

The Reserve Bank of India will buy government securities worth Rs 60,000 crore in three tranches to boost liquidity. Additionally, a USD/INR Buy/Sell Swap auction and a 56-day Variable Rate Repo auction are announced to stabilize liquidity and market conditions.

The Reserve Bank of India has announced plans to purchase government securities totaling Rs 60,000 crore in three stages, aiming to infuse liquidity into the banking sector.

This initiative is part of broader measures that include a USD/INR Buy/Sell Swap auction, worth USD 5 billion, set for January 31, 2025, with a six-month tenor.

RBI will conduct open market operations on January 30, February 13, and February 20, alongside a 56-day Variable Rate Repo auction on February 7, to ensure smooth liquidity management in the market.

(With inputs from agencies.)