BANKING & FINANCE
RBI
Reserve Bank of India Initiates $5 Billion Buy/Sell Foreign Exchange Swap to Manage Liquidity
The central bank has announced a USD-INR buy/sell swap auction of USD 5 billion with a three-year maturity period to infuse durable rupee liquidity into the banking system.
Under this mechanism, the RBI will purchase US Dollars from participating banks today and contractually sell back the equivalent amount at the end of the three-year tenor.
Bidding norms mandate a minimum bid size of USD 10 million, with additional bids allowed in increments of USD 1 million, and premium quotes expressed in paisa up to two decimal places.
This proactive measure aids in reinforcing the foreign exchange reserves temporarily while addressing localized pressure on the Indian Rupee arising from global macroeconomic headwinds.
Under this mechanism, the RBI will purchase US Dollars from participating banks today and contractually sell back the equivalent amount at the end of the three-year tenor.
Bidding norms mandate a minimum bid size of USD 10 million, with additional bids allowed in increments of USD 1 million, and premium quotes expressed in paisa up to two decimal places.
This proactive measure aids in reinforcing the foreign exchange reserves temporarily while addressing localized pressure on the Indian Rupee arising from global macroeconomic headwinds.
Key Facts / Static GK
RBI Governor: Shaktikanta Das
RBI Establishment: 1 April 1935
RBI Headquarters: Mumbai, Maharashtra
RBI Establishment: 1 April 1935
RBI Headquarters: Mumbai, Maharashtra
Practice Quiz — 22 May 2026
Q1. Which of the following statements is correct regarding the newly approved Maritime Investment Fund (MIF)?
Answer: (C) It is a sub-segment of the broader ₹25,000-crore Maritime Development Fund (MDF) managed by SBI Ventures. — The Maritime Investment Fund (MIF) is a ₹20,000 crore fund which is a key component of the broader ₹25,000-crore Maritime Development Fund (MDF) and will be managed by SBI Ventures as a closed-end Category I/II AIF.
Q2. What is the minimum bid size required for banks participating in the RBI's USD-INR buy/sell swap auction?
Answer: (C) USD 10 million — According to the bidding conditions announced by the RBI for the USD-INR swap auction, the minimum bid size must be USD 10 million, with additional bids in multiples of USD 1 million.
Q3. Which crop received the highest absolute Minimum Support Price (MSP) increase for the 2026–27 marketing season?
Answer: (D) Sunflower Seed — Sunflower seed registered the highest absolute increase of ₹622 per quintal, followed by cotton at ₹557 per quintal and sesamum at ₹500 per quintal.
Q4. Who has been assigned the charge of the newly created, first-of-its-kind Cabinet-Level AI portfolio in Kerala?
Answer: (A) P. K. Kunhalikutty — The newly created Artificial Intelligence portfolio in Kerala has been assigned to senior leader P. K. Kunhalikutty as part of the cabinet restructuring under the state government.
Q5. Where is India's first SME-led semiconductor ATMP/OSAT facility located?
Answer: (A) Bhiwadi, Rajasthan — India's first SME-led semiconductor ATMP/OSAT facility has been established in Bhiwadi, Rajasthan, by Sahasra Semiconductors Pvt. Ltd.
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