The swap auction is part of the central bank’s latest measures (announced on January 27, 2025) to inject Rupee liquidity aggregating about Rs 1.50 lakh crore into the banking system.

The RBI received bids from 253 participants aggregating $25.59 billion at the auction against the notified amount of $5 billion.

It accepted bids aggregating $5.10 billion (injecting an equivalent amount of Rupee liquidity into Banks) at a weighted average premium of 97.72 paise.

In the first leg of the aforementioned swap transaction, banks sold US Dollars to the RBI. The RBI will credit the Rupee funds to the current accounts of the successful bidders.

In the reverse leg of the swap transaction, Rupee funds will be returned to the RBI along with the swap premium after six months to get the US Dollars back.