The Reserve Bank of India plans to act to ease the tightness in liquidity in the economy. It plans to buy ₹1 trillion worth of Govt. bond via OMOs scheduled to take place on 5th and 12th Feb, equally split on both days. This will supply the banks and financial institutions withmuch required liquidity for the economy, easing the availability of credit in the economy.
The Rupee touched an all-time low of 91.97 against the dollar due to global economic conditions and continued selling by FII, leading to high money flowing out of the country. To deal with the continuous decline in the Rupee-Dollar exchange rate, RBI plans to enter into a currency swap agreement to control the further decline