Mumbai: The Reserve Bank of India (RBI) will pump in another set of liquidity in December by infusing Rs 40,000 crore into the system through open market operations (OMOs).
"Based on an assessment of the durable liquidity needs going forward, the RBI has decided to conduct purchase of government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 400 billion in the month of December 2018," the central bank said in a release Tuesday.
The Reserve Bank will detail about the auction dates for the OMOs in due course.
However, it added that this OMO amount is indicative with the RBI retaining the flexibility to change it, depending on the evolving liquidity and market conditions.
The RBI had announced to inject Rs 40,000 crore into the system in November. It has already infused Rs 30,000 crore into the system while the rest Rs 10,000 crore liquidity would be pumped in through auction 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 the following Government securities under OMOs for an aggregate amount of Rs 100 billion on November 29, 2018 through multi-security auction using the multiple price method," RBI said in a separate release.
In October, the central bank already injected Rs 36,000 crore into the system through OMOs.
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.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Nov 28, 2018 07:50:13 IST