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RBI will buy,how many billion from the banks under swap deal for the first time to enhance liquidity in the system using a new tool on 26th March,2019?
  • a)
    $5 billion
  • b)
    $2 billion
  • c)
    $10 billion
  • d)
    $8 billion
  • e)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
RBI will buy,how many billion from the banks under swap deal for the f...
The Reserve Bank of India (RBI) has decided to use a new tool for the first time to enhance liquidity in the system using which it will buy $5 billion from the banks in a swap deal that is capable of injecting around Rs. 35,000 crores into the system.Banks will have to deposit dollar funds with RBI with the condition of buying them back from RBI after 3 years.The first-ever auction of this kind involving US dollar buy/sell swap will happen on 26th March 2019.Minimum bid size for the auction has been fixed at $25 million and multiple bids submission by banks will be allowed. However, the aggregate amount of bids submitted by single eligible entity should not exceed the notified amount of auction.
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RBI will buy,how many billion from the banks under swap deal for the first time to enhance liquidity in the system using a new tool on 26th March,2019?a)$5 billionb)$2 billionc)$10 billiond)$8 billione)None of theseCorrect answer is option 'A'. Can you explain this answer?
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