RBI to inject Rs 10,000 cr via open market operations on Thursday; process to help ease tight liquidity situation

Mumbai: The Reserve Bank of India (RBI) on Tuesday said it would inject Rs 10,000 crore into the system through purchase of government securities on December 6 to increase liquidity. [caption id=“attachment_5129811” align=“alignleft” width=“380”] File image of Reserve Bank of India. Reuters[/caption] 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 Reserve Bank has decided to conduct purchase of … government securities under open market operations for an aggregate amount of Rs 10,000 crore on 6 December, 2018 (Thursday),” the central bank said. The OMO will help ease tight liquidity situation triggered by a series of defaults by group companies of IL&FS. The eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system on 6 December. 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 also announced auction of a 12-day Government of India Cash Management Bill. The amount notified for the auction is Rs 30,000 crore.