//Reserve Bank of India to infuse Rs 25,000 crore into banks via OMO

Reserve Bank of India to infuse Rs 25,000 crore into banks via OMO

The decision on OMO is based on review of the evolving liquidity conditions and also of the durable liquidity needs going forward, RBI said.

twitter-logo 
BusinessToday.In   New Delhi     Last Updated: February 26, 2019  | 20:53 IST

The Reserve Bank of India (RBI) on Tuesday said it would infuse Rs 25,000 crore into the banking system through open market operations during the first fortnight of March 2019.

“RBI has decided to conduct the purchase of government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 12,500 crore on February 28,” the central bank said in a press release.

The RBI will conduct purchase of government securities through multi-security auction using the multiple price method.

The decision on OMO is based on review of the evolving liquidity conditions and also of the durable liquidity needs going forward, RBI said.

The auction dates and the Government securities to be purchased in the respective auctions would be communicated in due course, it added.

The OMO amount stated above is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions, the central bank said.

The RBI further said that liquidity conditions will continue to be monitored and depending on the assessment, it will consider further liquidity operations and the choice of instruments.

Also Read: Prime Minister Narendra Modi inaugurates the largest Bhagavad Gita in the world

Edited by Chitranjan Kumar