The rest of the money was obtained from the foreign exchange reserves, which means that the RBI had to manage its dollar liquidity to ensure that it had the requisite amount in hand. Giving dollars directly from its reserves to State Bank of India (SBI) ensured that the market was not affected, and the swaps had the same effect, with the result that the redemptions went through very smoothly.
The foreign exchange and debt markets had been skittish all through September, worried about the redemptions. In spite of the central bank
