Reserve Bank of India to inject Rs 12,000 cr liquidity in system on 1 November; to purchase govt securities

The RBI had announced last week that it would inject Rs 40,000 crore into the system in November as it looks to meet festive season demand for funds.

Press Trust of India October 31, 2018 07:18:48 IST
Reserve Bank of India to inject Rs 12,000 cr liquidity in system on 1 November; to purchase govt securities

Mumbai: Ahead of the Diwali festival, the Reserve Bank on Tuesday announced it will inject Rs 12,000 crore into the system through the purchase of government securities on 1 November.

Last week, the central bank said had announced to inject Rs 40,000 crore into the system in November through the purchase of government securities as it looks to meet festive season demand for funds.

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct the purchase of the following Government securities under Open Market Operations for an aggregate amount of Rs 120 billion on November 01, 2018 (Thursday)...," it said in a statement.

Reserve Bank of India to inject Rs 12000 cr liquidity in system on 1 November to purchase govt securities

File image of RBI. AFP

The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on 1 November.

The result of the auction will be announced on the same day and payment to successful participants will be made the following day.

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.

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