The Reserve Bank of India will conduct a massive $10 billion three-year dollar/rupee swap auction next week to infuse durable rupee liquidity into the banking system, which has been reeling under large cash deficits,

The Reserve Bank of India (NSE: BOI) (RBI) took significant action to support the Indian rupee and enhance liquidity within the banking system. The central bank announced a $10 billion 3-year buy/sell swap to be conducted on Friday, which is expected to inject approximately 870 billion rupees into the banking sector.

The central bank's initiative is designed to provide a durable solution to the system's liquidity requirements, while also stabilising the value of the rupee and bolstering the nation's foreign exchange kitty.

The RBI has infused more than 3.6 trillion rupees ($41.56 billion) of durable liquidity into the banking system through a combination of debt purchases, FX swap and longer duration repos.

The Reserve Bank of India will conduct a USD 10 billion forex swap auction to inject long-term liquidity into the banking system. This move aims to address durable liquidity needs.

MUMBAI: In a move aimed at improving liquidity in the banking system, the RBI has said that it will conduct a USD/INR buy/sell swap auction on Feb 28 to inject Rs 86,000 crore into the banking system.

India's central bank, the Reserve Bank of India (RBI), on Friday, February 21, announced that they have decided to conduct a $10 billion USD/INR Buy/Sell auction for the tenure of three years.