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RBI to boost liquidity through OMO purchase, dollar-rupee swap
Dec-24-2025

With an aim of boosting liquidity in the banking system, the Reserve Bank of India is all set to conduct Open Market Operations (OMO) purchase and dollar-rupee swap auction from December 29, 2025 to January 22, 2026. The RBI will purchase government securities worth Rs 2 lakh crore and conduct a $10 billion buy/sell dollar-rupee swap auction. Further, it has assured that it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.

RBI will purchase the Government of India securities in four tranches of Rs 50,000 crore each on December 29, 2025, January 5, January 12, and January 22, 2026. Further, USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 3 years to be held on January 13, 2026. The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side. A bank shall sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period. 

Recently, the RBI had conducted Rs 1 lakh crore OMO purchase auctions of Government of India securities and USD/INR Buy/Sell Swap auction of $5 billion for a tenor of three years. It conducts the OMO and swap operations in order to maintain liquidity in the country’s banking system.

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