The Reserve Bank of India (RBI) will inject Rs 1.9 lakh crore into the banking system through bond purchases and forex swaps to ease liquidity constraints ahead of tax outflows. These measures aim to stabilise markets,

In a big relief for banks, RBI Governor Sanjay Malhotra had also announced the postponement of the proposed Liquidity Coverage Ratio (LCR) as well as project financing norms by a year.

RBI Announces Rs 1 Lakh Crore Bond Purchases, $10 Billion Swap to Boost Liquidity - The Reserve Bank of India (RBI) unveiled major liquidity measures, including open market operation

The central bank in a statement said that the measures, purchase of government bonds under open market operations (OMO) and foreign currency swaps, taken on a review of current and evolving liquidity

India’s monetary authority will pump in another $21.5 billion worth of cash via bond purchases and a forex swap as the banking system braces for financial year-end tightness in liquidity before March 31.

RBI’s liquidity infusion is aimed at replacing some of the Rs 1.8 lakh crore outstanding variable rate repos maturing in early April, Citi said.

India's central bank said on Wednesday it will infuse $21 billion in rupee liquidity into the banking system in a bid to ease lending conditions and boost economic growth.

The RBI has announced liquidity infusion of Rs 1 lakh crore into the banking system through open market opearations (OMO). The move follows an earlier round of liquidity infusion announced in January.

The Reserve Bank of India announced measures to inject ₹1 lakh crore into the banking system and conduct a dollar/rupee swap auction of $10 billion. These steps aim to address the liquidity deficit and ensure the smooth transmission of lower policy rates amid expected tax outflows.

Indian central bank's latest bond purchase and FX swaps underscore its intention to keep banking system liquidity in a surplus, which should help banks to pass on policy rate cuts to consumers, analysts said.