RBI gets into liquidity drive
The Reserve Bank of India (RBI) on Monday said it will purchase government securities worth Rs60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system
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Mumbai: The Reserve Bank of India (RBI) on Monday said it will purchase government securities worth Rs60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system. “The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions,” the RBI said.
As part of measures to manage liquidity conditions, the central bank also announced a USD/INR Buy/Sell Swap auction of $5 billion for a tenor of six months to be held on January 31, 2025.
To inject liquidity, RBI said open market operations (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 60,000 crore in three tranches of Rs20,000 crore each will be held on January 30, February 13, and February 20. Besides, a 56-day Variable Rate Repo (VRR) auction for a notified amount of Rs 50,000 crore will be held on February 7.
Detailed instructions for each operation will be issued separately, it added.
