The first swap auction was held just a week ago, with the RBI injecting Rs 34,500 crore into the system. The central bank on Monday announced it would inject long-term liquidity worth $5 billion through dollar-rupee buy-sell swap for a tenure of three years on April 23. The new mechanism, which will add to the liquidity toolkit of the central bank, will see banks selling dollars to the RBI in exchange for rupees. The dollars sold by the lenders will be bought back at the end of the swap period which will be three years. In the first auction, the apex bank received 240 bids worth $16.31 billion against the target of $5 billion.

Source: The Telegraph April 01, 2019 19:41 UTC