RBI to inject $5 bn more liquidity into banking system

Mumbai: The Reserve Bank of India (RBI) on Monday said it will inject long-term liquidity worth $5 billion into the banking system through dollar-rupee buy-sell swap for a tenure of three years on April 23, the second such auction within a month.

Earlier on March 26, the central bank had bought $5 billion through similar swap auction in a bid to ease liquidity ahead of elections.

"In order to meet the durable liquidity needs of the system, the RBI has decided to inject Rupee liquidity for longer duration through long-term foreign exchange Buy/Sell swap in terms of its extant Liquidity Management Framework," the RBI said in a statement.

The $/INR Buy/Sell swap auction of $5 billion for tenor of three years will be held on April 23, 2019, it said.