RBI Unveils Liquidity-Boosting Measures to Stabilize Financial System
| Aspect | Details |
|---|---|
| Why in News | RBI announces liquidity-boosting measures to stabilize the financial system. |
| Key Measures | - $5 billion USD/INR buy/sell swap auction.- ₹60,000 crore in OMOs.- ₹50,000 crore VRR auction. |
| Forex Swap Auction | - Conducted on January 31, 2025.- Worth $5 billion (₹43,000 crore).- Oversubscribed five times (bids worth $25.59 billion).- Six-month maturity period. |
| Open Market Operations (OMOs) | - ₹60,000 crore in three tranches: ₹20,000 crore each on Jan 30, Feb 13, and Feb 20, 2025.- Aims to inject liquidity by purchasing government securities. |
| Variable Rate Repo (VRR) Auction | - 56-day auction worth ₹50,000 crore on February 7, 2025.- Targets short-term liquidity needs. |
| Current Liquidity Deficit | ₹3 lakh crore in the banking system. |
| Expected Liquidity Infusion | ₹1.5 lakh crore through combined measures. |