RBI to inject Rs 1 lakh crore via OMO, $10 bn USD/INR swap for liquidity

• The Reserve Bank of India (RBI) announced measures to inject liquidity into the banking system.
• RBI will purchase government securities worth Rs 1 lakh crore through Open Market Operations (OMO).
• The OMO will be conducted in two tranches of Rs 50,000 crore each on January 29 and February 5.
• Additionally, a USD 10 billion buy/sell USD/INR swap auction for a three-year tenor will be held on February 4.
• This swap involves banks selling US dollars to RBI and agreeing to buy them back at the end of the swap period.

Why It Matters: RBI implements Rs 1 lakh crore OMO and $10 billion USD/INR swap to boost banking liquidity.