The Reserve Bank of India (RBI) Tuesday said it would inject Rs 10,000 crore into the system through purchase of government securities on January 17 to increase liquidity. The purchase will be made through open market operations (OMOs).
“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of … Government securities under OMOs for an aggregate amount of Rs 100 billion on January 17, 2019,” the central bank said in a statement.
The eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system on January 17. The result of the auction will be announced on the same day and payment to successful participants will be made on the following day.
The RBI plans to inject liquidity under OMOs for Rs 50,000 crore in January 2019. The central bank has so far injected Rs 20,000 through OMOs in January.