RBI Announces $5 Billion USD/INR Buy/Sell Swap Auction to Manage Liquidity
This decision follows a review of systemic liquidity and the sharp depreciation of the Indian rupee against the US dollar amid global economic uncertainties.
Under the swap framework, the RBI will buy US dollars from banks and simultaneously agree to sell back the same amount at the end of the three-year swap period.
Only Authorized Dealers Category-I (AD Category-I) banks are eligible to participate, with a minimum bid size of USD 10 million and subsequent multiples of USD 1 million.
Key Facts / Static GK
RBI Headquarters: Mumbai, Maharashtra
RBI Governor: Shaktikanta Das
Q Practice Quiz — 21 May 2026
1. Which international organization presented the prestigious 'Agricola Medal' to Prime Minister Narendra Modi in May 2026?
Explanation: Prime Minister Narendra Modi was awarded the 'Agricola Medal', the highest honour of the Food and Agriculture Organization (FAO), at its headquarters in Rome, Italy, by Director-General Qu Dongyu.
2. What is the historical significance of the novel 'Taiwan Travelogue' winning the International Booker Prize 2026?
Explanation: The novel 'Taiwan Travelogue' made history as the first book originally written in Mandarin Chinese to win the prestigious International Booker Prize.
3. Regarding the RBI's $5 billion USD/INR buy/sell swap auction announced in May 2026, which of the following statements is/are correct? I. The swap auction has a tenor of three years. II. Only Scheduled Commercial Banks can participate in the auction. III. The minimum bid size required is USD 10 million.
Explanation: Statement I is correct because the swap has a three-year tenor. Statement II is incorrect because Authorized Dealers Category-I (AD Category-I) banks are the eligible entities, not just any Scheduled Commercial Bank. Statement III is correct as the minimum bid size is indeed USD 10 million.
4. Which African nation has partnered with the UNDP to adopt India's Electronic Vaccine Intelligence Network (eVIN) platform for medical logistics?
Explanation: Zambia has decided to adopt India's indigenous eVIN (Electronic Vaccine Intelligence Network) platform to strengthen its medical supply chain and vaccine logistics management.
5. With reference to the pilot coffee clusters launched under the Nagaland Coffee Mission, match the following locations with their respective districts and coffee varieties: 1. Tuophema Village | a. Niuland | x. Robusta 2. Ghotovi Village | b. Kohima | y. Arabica
Explanation: According to the coffee cluster project, Tuophema Village is located in the Kohima district and cultivates the Arabica variety (1-b-y). Ghotovi Village is in the Niuland district and cultivates the Robusta variety (2-a-x).
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