RBI unveils multiple measures to improve liquidity

The RBI will carry out open market operations (OMO) purchase auctions of government securities (G-Secs) for a total amount of ₹60,000 crore. The auctions will be divided into three tranches, each amounting to ₹20,000 crore. The dates for these auctions are set for January 30, February 13, and February 20, 2025.

Additionally, the RBI plans to conduct a 56-day variable rate reverse repo (VRR) auction with a notified amount of ₹50,000 crore, scheduled for February 7, 2025.

In a move to manage foreign exchange liquidity, the RBI will also hold a USD/INR buy/sell swap auction on January 31, 2025. This auction will involve a transaction of $5 billion for a six-month tenure.

The RBI has assured that it will continue to closely monitor evolving liquidity and market conditions. As part of its ongoing efforts to ensure orderly liquidity conditions, the RBI will take further actions as necessary to stabilise the financial system.

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