The Reserve Bank of India today said it will inject Rs 40,000 crore into the system in November through purchase of government securities as it looks to meet festive season demand for funds.
For October, the central bank injected Rs 36,000 crore through open market operations.
“Based on an assessment of the durable liquidity needs, the RBI has decided to conduct the purchase of government securities under open market operations for an aggregate amount of Rs 40,000 crore in November,” the central bank said in a release.
The auction dates and the government securities to be purchased in the respective auctions would be communicated in due course, it said.
“The open market operation amount stated ... is indicative and the RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions,” it said.
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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