RBI G-Sec Purchase of ₹1 Lakh Crore and $10 Bn Forex Swap
Why in the news
After reviewing liquidity conditions, the Reserve Bank of India announced steps to add funds to banks and calm currency swings.
Key facts
| Date | Operation | Size |
|---|---|---|
| March 12 | G-Sec open market purchase | ₹50,000 crore |
| March 18 | G-Sec open market purchase | ₹50,000 crore |
| March 24 | Forex swap, 36 months | $10 billion |
Significance
- Buying G-Secs puts money into the banking system.
- The forex swap may help manage rupee volatility against the dollar.
- RBI said it keeps monitoring conditions and will act to keep financial flows smooth.
Exam angle
- Liquidity tool: open market purchase of G-Secs.
- Swap: $10 billion for 36 months.