New Delhi, Dec. 8 -- The Reserve Bank of India is set to inject liquidity into the banking system through a long-term USD/INR Buy/Sell Swap auction, marking a key move to ease financial conditions at a time when liquidity needs closer attention. According to an RBI press release on Monday, the central bank will hold a 36-month swap auction of USD 5 billion on December 16, 2025.

In the swap auction, market participants will submit bids based on the premium they decide to pay to the Reserve Bank for the entire three-year tenor. The premium must be quoted in paisa terms up to two decimal places. The cut-off will be set according to the premium received, and successful bids will be accepted at the exact premium quoted, as the auction follows...