Investing.com -- The Reserve Bank of India (NSE: BOI ) (RBI) has announced measures to increase liquidity in the banking system. These actions include open market bond purchases and a buy-sell swap forex auction.

The RBI plans to buy 600 billion rupees ($6.9 billion) worth of bonds through open market purchases. Additionally, a $5 billion buy/sell dollar-rupee swap will be conducted, as stated by the bank on Monday.

The central bank also intends to inject an additional 500 billion rupees into the banking system. This will be done through a 56-day variable rate repo auction. These measures are being taken to maintain stability in the banking system, which is currently experiencing its highest liquidity deficit in over a decade.

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