RBI will improve the condition of the economy, this is ho the cash shortage will be compensated

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​​​India, the world's fifth largest economy, is currently facing major problems at the economic level ranging from inflation to lack of demand. India's growth rate remains fine, but it is not as per expectations. In such a situation, the country's central bank has announced to take several steps to improve the country's economic condition.

Budget 2025 is to be presented on February 1 this year. After that the country's monetary policy is to come, in such a situation, the Reserve Bank of India has announced on Monday to improve the condition of the country's banking sector.

RBI will buy government bonds

The Reserve Bank of India says that it will put more cash in the banking system to solve the problem of cash shortage. However, for this it will try the option of buying government bonds. The Reserve Bank has said that it is going to buy government bonds worth Rs 60,000 crore in 3 installments. Along with this, it is going to take many other steps as well.

RBI has also announced to conduct dollar auction on 31 January 2025 as part of measures to manage the liquidity situation in the banking system. It will conduct a buy/sell or swap auction of US dollar/rupee worth five billion dollars for a period of six months.

To improve the liquidity situation, the central bank has said that it will buy government bonds worth Rs 60,000 crore in three installments of Rs 20,000 crore on January 30, February 13 and February 20. The central bank is going to conduct this auction through open market operations.

Apart from this, the central bank will also conduct a 56-day variable rate repo (VRR) auction for a scheduled amount of Rs 50,000 crore on February 7. The central bank will continue to monitor the emerging cash problem and market conditions and take appropriate measures to ensure orderly cash conditions.