"RBI Announces ₹1 Trillion Liquidity Infusion Through OMOs & Dollar Swap" indian citizen

Liquidity Measures:

 The RBI has announced open market operations (OMO) to purchase government securities worth ₹1 trillion in two tranches of ₹50,000 crore each, scheduled for March 12 and March 18, 2025. Additionally, a dollar/rupee swap auction of $10 billion is planned to infuse liquidity into the banking system.

Monitoring of ATM Operations:

• The RBI is set to review the cash handling processes of AGS Transact, a prominent ATM operator, following allegations of unaccounted funds and misappropriation. AGS Transact has stated that they are reconciling cash across their ATMs and vaults, handing it over to the respective banks in line with established industry procedur

• Monetary Policy Update:

  • In its latest Monetary Policy Committee (MPC) meeting on February 7, 2025, the RBI announced a 25 basis points rate cut, marking its first easing in five years. This decision reflects a cautious view on growth, while winter disinflation in food is expected to limit price stability risks.

  These developments underscore the RBI's efforts to manage liquidity, ensure the integrity of cash operations, and support economic growth through monetary policy adjustments.