Senior officials from the Reserve Bank of India met about two dozen bankers on Monday for feedback on the central bank's new cash infusion tool, according to two bankers who attended the meeting.

While the meeting was aimed at ironing out any procedural issues for implementing the central bank's debut move, it also indicated the RBI's willingness to smoothen tight cash conditions in the banking system, the bankers said.

The RBI will conduct a forward dollar/rupee buy-sell swap auction worth $5 billion on March 26, its first such move to infuse rupee liquidity into cash-strapped banks. Under this arrangement, the RBI will buy dollars from banks for three years promising a specified premium for selling back the same at maturity.

The announcement has already pushed down the one-year forward premium by 30 basis points to 3.60 percent.