Q3: Why is the RBI conducting this swap auction?
Ans: To inject long-term liquidity into the banking system amid rupee weakness and global market risks.
Q4: How does a USD-INR buy/sell swap work in simple terms?
Ans: Banks sell dollars to RBI now and receive rupees. They commit to buying back the same dollars after three years.
Q5: What is the minimum bid size for participating banks?
Ans: The minimum bid size is USD 10 million.
Month: Current Affairs - May 21, 2026
Category: RBI Monetary Policy