RBI announces Rs 1.9 lakh crore liquidity inject measures

Mumbai: Continuing measures to inject liquidity into the banking system, the Reserve Bank on Wednesday said it will conduct open market purchases of government securities and undertake USD/INR swaps totalling about Rs 1.9 lakh crore during the month. On February 28, the central bank conducted US dollar-rupee swap worth $10 billion to inject long-term liquidity into the system, with the auction eliciting robust demand. Following a review of current and evolving liquidity conditions, the RBI on Wednesday said it will conduct OMO (open market operation) purchase auctions of Government of India securities for an aggregate amount of Rs 1,00,000 crore in two tranches of Rs 50,000 crore each to be held on March 12 and March 18. USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 36 months is scheduled for March 24, it added. Additionally, the Reserve Bank of India said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.