RBI to inject Rs 40,000 crore to purchase govt securities
New Delhi : Owing to the festive season demand for funds, the Reserve Bank of India has decided to inject Rs 40,000 crore into the system in November through the purchase of government securities. To inform, the central bank had already injected Rs 36,000 crore into the system in October through open market operation (OMO).
“Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of Government securities under OMOs for an aggregate amount of Rs 40,000 crore in the month of November 2018,” the central bank said in a release.
For now, the dates for auction and purchase of government securities would be declared in due course. “The OMO amount stated ... is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions.”
The Reserve Bank of India (RBI) had previously mentioned that the system liquidity would move into deficit in the second half of 2018-19 and evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management.
About Reserve Bank of India
The Reserve Bank of India is country's central banking institution, which looks after the monetary policy of the Indian rupee. It was established on 1 April 1935 in accordance with the RBI Act 1934.
