The Reserve Bank of India’s 3-year dollar/rupee buy-sell swap witnessed robust appetite on Tuesday, with the auction drawing bids a little over twice the $5 billion size. The swap is part of a $16 billion liquidity injection into the banking system, aimed at boosting transmission of rate cuts to lending rates. Strong demand at RBI FX swap auction The RBI accepted 118 bids at the FX swap auction with the premium cut-off set at 7.65 rupees. A total of 222 bids worth $10.35 billion were received. Bankers had anticipated robust demand owing to the excess dollar liquidity in the banking system.