RBI Injects ₹1.45 Lakh Crore into Banking System via OMOs and Forex Swaps
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TL;DR
RBI injects ₹1.45 lakh crore into banking system via OMO purchases and forex swaps to address liquidity strain and maintain 1% NDTL threshold, ensuring adequate liquidity and monetary transmission.
The RBI has announced OMO purchases of ₹1 lakh crore in two tranches and a $5 billion forex swap to inject liquidity into the banking system. The move aims to steer liquidity towards the desired 1% of NDTL threshold, addressing liquidity strain caused by foreign-exchange interventions and seasonal currency leakage. Economists say these measures will ensure adequate liquidity and facilitate monetary transmission.
