RBI Launches $10 Billion Forex Swap

The Reserve Bank of India (RBI) has started a special plan to help banks have more money to lend.

They are doing this by buying dollars from banks and giving them rupees.

This is called a forex swap.

The RBI will buy $10 billion worth of dollars from banks and give them rupees.

After three years, the RBI will give the dollars back to the banks and take the rupees back.

The exchange rate for this swap is decided in two parts: one part is set on the day of the auction, and the other part is set based on a premium that banks bid for.

This plan helps banks have more money to lend to people and businesses.

It also shows that the RBI is not trying to make the rupee weaker in the long term.