RBI To Buy Government Bonds Worth Rs 40,000 Crore In Further Liquidity Push
The OMO purchase auction will be conducted on April 17, the RBI said, adding that the decision was taken after reviewing the "current and evolving liquidity conditions".
The Reserve Bank of India on Friday announced that it would be conducting a fresh purchase of government bonds worth Rs 40,000 crore under open market operations.
The OMO purchase auction will be conducted on April 17, the RBI said in a release, adding that the decision was taken after reviewing the "current and evolving liquidity conditions".
The maturity of the bonds ranges from 2028 to 2039. The result of the auction will be announced on the same day.
This purchase of government securities will be in addition to the Rs 80,000-crore worth of bond purchase announced by the central bank on April 1. This will be carried out in four tranches of Rs 20,000 crore each.
In the OMO auction held on April 3, participating financial institutions offered Rs 80,820 crore across bonds maturing between 2029 and 2039.
The subsequent auction on April 8 saw offers worth Rs 70,144 crore across bonds maturing between 2032 and 2039.
The next rounds are scheduled for April 22 and April 29.
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 benchmark repo rate by 25 basis points and changing its neutral stance to accommodative.
