India's central bank employed short-term sell-buy foreign-exchange swaps to drain excess cash from banks, targeting a record $115 billion surplus in the financial system. The Reserve Bank of India conducted these swaps, with some maturing in October, as confirmed by sources familiar with the operation. The move aims to stabilize the rupee amid global liquidity pressures while preserving monetary control.

No specific transaction size was disclosed. This action reflects the RBI's proactive approach to managing systemic liquidity, complementing its broader foreign exchange interventions. The strategy aligns with recent measures to prevent rupee volatility without direct rate hikes, maintaining focus on market-driven adjustments.

The operation underscores the central bank's commitment to balancing growth and inflation targets through precise liquidity management.