On a review of current liquidity and financial conditions, the Reserve Bank has decided to conduct certain operations to inject liquidity into the banking system. As per the bank’s press release, the RBI will hold OMO purchase auctions of Government of India securities for an aggregate amount of 60,000 crore rupees in three tranches of 20,000 crore rupees each on 30th January 30, 13th and 20th February 2025. A 56-day Variable Rate Repo (VRR) auction for a notified amount of 50,000 crore rupees will be held on 7th February 2025. USD/INR Buy/Sell Swap auction of five billion US dollars for a tenor of six months will be held on 31st January.
The release further stated that the detailed instructions for each operation shall be issued separately. The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.