Mumbai, May 26 -- The Reserve Bank of India's (RBI) USD/INR swap auction of USD 5 billion witnessed robust demand from market participants on Tuesday, with the auction getting nearly two times oversubscribed, according to data released by the central bank.

The RBI said that against the notified amount of USD 5 billion, participants placed bids worth USD 9.80 billion, reflecting strong appetite for the liquidity operation. The bid-to-cover ratio stood at 1.96, indicating that bids received were almost double the amount on offer.

The central bank accepted bids amounting to the full notified size of USD 5 billion. A total of 254 bids were received during the auction, out of which 141 bids were accepted.

According to the RBI, the cut-off p...