The Reserve Bank of India has successfully completed a foreign exchange swap auction, injecting $10.00 billion of liquidity into the banking system. The operation demonstrates the central bank's active approach to managing liquidity conditions in the financial markets.

Auction Details and Market Response

The FX swap auction attracted substantial participation from market participants, with the RBI receiving bids worth $29.94 billion. This level of participation indicates robust demand for the central bank's liquidity injection mechanism.

Market Implications

The foreign exchange swap auction represents a key monetary policy tool used by the RBI to manage rupee liquidity in the banking system. Through this mechanism, the central bank provides dollar funding to banks while simultaneously absorbing rupees from the market, effectively managing both liquidity conditions and exchange rate dynamics.

The significant oversubscription, with bids nearly three times the amount allocated, reflects the banking sector's appetite for such liquidity support measures. This level of participation suggests that financial institutions view the RBI's swap facility as an attractive source of funding.

The Reserve Bank of India has released its official holiday calendar for January 2026, revealing that bank closures for Makar Sankranti will be limited to select states only. The harvest festival, celebrated on January 14, will result in bank holidays in just four states, while banking operations continue normally across the rest of the country.

Makar Sankranti Bank Closures: Limited State Impact

According to RBI notifications under the Negotiable Instruments Act, banks will remain closed on January 14, 2026, exclusively in Gujarat, Odisha, Assam, and Arunachal Pradesh for Makar Sankranti celebrations. In these states, customers will be unable to access branch-level banking services, including cheque clearing and over-the-counter transactions.

Banking Operations Continue in Majority States

Banks across all other states and union territories will maintain regular operations on January 14, ensuring uninterrupted banking services for the majority of customers nationwide. The selective holiday approach reflects the regional nature of festival celebrations and state-specific public holiday declarations.

Customers should note that digital banking services will remain fully operational even in states observing the holiday. UPI payments, net banking, mobile banking applications, ATM cash withdrawals, and online bill payments will function normally throughout the holiday period.

Complete January 2026 Bank Holiday Schedule

The RBI has outlined a comprehensive holiday calendar for January 2026, featuring multiple regional celebrations:

Regional Festival Considerations

January represents one of India's most holiday-intensive months due to harvest festivals celebrated across different regions. The staggered holiday schedule accommodates regional preferences while maintaining banking accessibility for the broader population. Republic Day on January 26 stands as the only universal banking holiday, affecting all states and union territories nationwide.

Customers in affected states should plan their banking requirements accordingly, utilizing digital channels for urgent transactions during holiday periods.