<p>Mumbai: The Reserve Bank of India (RBI) did not roll over and took delivery of the $5 billion dollar/rupee swap that matured on Monday, aiming to bolster foreign exchange reserves and rupee liquidity, four bankers said.</p><p>The RBI's dollar/rupee sell-buy swap conducted in March 2022 matured on Monday. </p><p>The RBI had the option to take delivery of the swap, roll it over entirely, or opt for a partial rollover.</p>.RBI tightens rules for credit, debit cards used for business accounts.<p>Bankers reckon that the RBI opted to take delivery, thereby removing $5 billion out of the system and injecting proportionate liquidity.</p><p>"In all likelihood, it seems that the RBI has taken delivery of the swap," said Ritesh Bhusari, joint general manager for treasury at South Indian Bank.</p><p>The rupee infusion will help the RBI in better managing the rupee liquidity situation ahead of tax outflows, Bhusari said.</p><p>Advance tax outflows on March 15 and the GST outflows around March 20 are expected to take out about 2.5 trillion rupees ($30.23 billion), according to traders.</p><p>"RBI likely took delivery. It ticks off two boxes - forex reserves and rupee liquidity," Dhiraj Nim, forex strategist at ANZ, said. He pointed out that dollar liquidity is not currently a concern as inflows are healthy, while rupee liquidity remains tight.</p><p>The RBI did not immediately reply to am email seeking comment.</p><p>The RBI's purported move to take delivery of the swap will further boost India's forex reserves, which are already at a two-year high. India's forex reserves stood at $625.6 billion as on March 1, according to data published by the central bank.</p><p>The data, which will include the changes in forex reserves due to the swap maturity, will be released on March 22.</p><p>The change in reserves resulting from the swap delivery may not precisely match the $5 billion amount, a senior treasury official at a private bank explained.</p><p>The RBI supplied dollars last Thursday and on Monday via spot over March swaps, which would have an impact on the headline reserves, he said.</p>
<p>Mumbai: The Reserve Bank of India (RBI) did not roll over and took delivery of the $5 billion dollar/rupee swap that matured on Monday, aiming to bolster foreign exchange reserves and rupee liquidity, four bankers said.</p><p>The RBI's dollar/rupee sell-buy swap conducted in March 2022 matured on Monday. </p><p>The RBI had the option to take delivery of the swap, roll it over entirely, or opt for a partial rollover.</p>.RBI tightens rules for credit, debit cards used for business accounts.<p>Bankers reckon that the RBI opted to take delivery, thereby removing $5 billion out of the system and injecting proportionate liquidity.</p><p>"In all likelihood, it seems that the RBI has taken delivery of the swap," said Ritesh Bhusari, joint general manager for treasury at South Indian Bank.</p><p>The rupee infusion will help the RBI in better managing the rupee liquidity situation ahead of tax outflows, Bhusari said.</p><p>Advance tax outflows on March 15 and the GST outflows around March 20 are expected to take out about 2.5 trillion rupees ($30.23 billion), according to traders.</p><p>"RBI likely took delivery. It ticks off two boxes - forex reserves and rupee liquidity," Dhiraj Nim, forex strategist at ANZ, said. He pointed out that dollar liquidity is not currently a concern as inflows are healthy, while rupee liquidity remains tight.</p><p>The RBI did not immediately reply to am email seeking comment.</p><p>The RBI's purported move to take delivery of the swap will further boost India's forex reserves, which are already at a two-year high. India's forex reserves stood at $625.6 billion as on March 1, according to data published by the central bank.</p><p>The data, which will include the changes in forex reserves due to the swap maturity, will be released on March 22.</p><p>The change in reserves resulting from the swap delivery may not precisely match the $5 billion amount, a senior treasury official at a private bank explained.</p><p>The RBI supplied dollars last Thursday and on Monday via spot over March swaps, which would have an impact on the headline reserves, he said.</p>