Mumbai: The Reserve Bank of India (RBI) will infuse Rs 10,000 crore into the market through open market operations (OMOs) on Thursday.
Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of government securities under Open Market Operations for an aggregate amount of Rs 100 billion on December 13, 2018, the RBI said in a release Tuesday.
Earlier last week, the RBI had infused Rs 10,000 crore into the system to increase liquidity in the market in the aftermath of IL&FS crisis.
The RBI has planned to infused Rs 40,000 crore during December based on its assessment of the durable liquidity needs.
It had infused Rs 40,000 crore into the system in November, while Rs 36,000 crore was injected in October this year.
The RBI had earlier stated that the system liquidity will move into deficit in the second half of 2018-19 and the evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management
OMOs are instruments to inject or drain out liquidity into/from the system. RBI resorts to purchase of bonds to infuse liquidity in the system while sucks it out by selling the instruments.
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Updated Date: Dec 12, 2018 07:55:06 IST