RBI will infuse additional Rs 40,000 crore through OMO purchase to stabilize liquidity
The previously announced Rs 80,000 crore OMO program, which is being carried out in four tranches of Rs 20,000 crore each on April 3, April 8, April 22, and April 29, is being supplemented by this auction.
The Reserve Bank of India (RBI) declared on Friday that it will buy Rs 40,000 crore worth of government securities through an open market operation (OMO) auction on April 17. As per the RBI latest data, net liquidity in the banking system was in a surplus of Rs 1.8 trillion on Thursday.
The previously announced Rs 80,000 crore OMO program, which is being carried out in four tranches of Rs 20,000 crore each on April 3, April 8, April 22, and April 29, is being supplemented by this auction.
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In order to inject Rs 1.5 trillion into the banking system, the central bank will also hold a long-term 43-day variable rate repo auction on the same day. Through OMO auctions, the RBI has so far contributed Rs 2.9 trillion. Through long-term variable rate repo (VRR) auctions, it has also contributed Rs 2 trillion.
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