RBI Announces Fresh Rs 1.25 Lakh Crore OMO Purchase In Further Liquidity Push
The OMO purchase auctions will be carried out in four tranches between May 6 and May 19, the RBI said.
The Reserve Bank has decided to conduct fresh open market operations purchase auctions of Government of India securities for an aggregate amount of Rs 1.25 lakh crore, as per a release issued on Monday.
The OMO purchase auctions will be carried out in four tranches between May 6 and May 19, the RBI said.
The decision was taken after "a review of current and evolving liquidity conditions", the central bank added.
The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions, it further stated.
This comes days after the RBI announced Rs 80,000-crore worth of bond purchase on April 1, followed by another Rs 40,000-crore worth of purchase announced on April 11.
The bond purchases are in continuation of the RBI's recent measures to inject liquidity into the system. In March, it conducted OMO purchases of government securities worth Rs 1 lakh crore in two tranches of Rs 50,000 crore each.
The central bank also held a dollar-rupee buy/sell swap auction of $10 billion for 36 months. Besides, the central bank this week reduced borrowing costs by cutting the the benchmark repo rate by 25 basis points and changing its neutral stance to accommodative.
