Business Standard

RBI to infuse Rs 8,000 cr through OMO on Dec 21

Under the OMO, RBI will auction three govt securities with maturity in 2018, 2020 and 2026

Related News

The of India (RBI) today said it will infuse Rs 8,000 crore into the system by purchasing on Friday as part of measure.

The decision comes hours after decided to keep as well as (CRR) unchanged.

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct (OMO) by purchasing government securities for an aggregate amount of Rs 8,000 crore on December 21, 2012 through multi-security auction," the central bank said in a statement.

Although RBI did not reduce the in today's policy review, it has decided to inject required liquidity through OMO operation.

As part of the OMO operation, the RBI will auction three government securities with maturity in 2018, 2020 and 2026.

There has been some tightening on the liquidity front due to advance tax outgo. Following this, the banks' borrowing from the RBI has gone up to Rs 1,51,770 crore today from 1,46,300 crore.

Earlier in the day, RBI Deputy Governor Subir Gokarn said the current high borrowing by banks is the result of large cash balance with the government and the advance tax payout.

He assured, however, that RBI will not let the liquidity condition go out of hand, and said if there is a need to do more OMOs it will be done.

Since the beginning of this month, RBI had done two Open Market Operations of Rs 12,000 crore each.

Read more on:   
|
|
|
|
|
|
|

RBI to infuse Rs 8,000 cr through OMO on Dec 21

Under the OMO, RBI will auction three govt securities with maturity in 2018, 2020 and 2026

The Reserve Bank of India (RBI) today said it will infuse Rs 8,000 crore into the system by purchasing government securities on Friday as part of liquidity injection measure.

The of India (RBI) today said it will infuse Rs 8,000 crore into the system by purchasing on Friday as part of measure.

The decision comes hours after decided to keep as well as (CRR) unchanged.

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct (OMO) by purchasing government securities for an aggregate amount of Rs 8,000 crore on December 21, 2012 through multi-security auction," the central bank said in a statement.

Although RBI did not reduce the in today's policy review, it has decided to inject required liquidity through OMO operation.

As part of the OMO operation, the RBI will auction three government securities with maturity in 2018, 2020 and 2026.

There has been some tightening on the liquidity front due to advance tax outgo. Following this, the banks' borrowing from the RBI has gone up to Rs 1,51,770 crore today from 1,46,300 crore.

Earlier in the day, RBI Deputy Governor Subir Gokarn said the current high borrowing by banks is the result of large cash balance with the government and the advance tax payout.

He assured, however, that RBI will not let the liquidity condition go out of hand, and said if there is a need to do more OMOs it will be done.

Since the beginning of this month, RBI had done two Open Market Operations of Rs 12,000 crore each.

image

Read More

RBI to infuse Rs 8,000 cr through OMO on Jan 4

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank ...

Recommended for you

Advertisements

Quick Links

More news from Finance Rss icon

Bank NPAs in Odisha mount to 8.26% in FY15

Out of total outstanding advances of Rs 94,755 cr made to various sectors by the banks, Rs 7,830 cr (8.26%) loans have turned NPA by March end

FIPB defers Kotak Bank's proposal to hike FDI limit

The FIPB, however, cleared the proposals of Den Networks, Biocon and Torrent Pharma

Edelweiss Tokio Life Insurance files FIPB application for foreign stake hike to 49%

Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Tokio Marine Holdings

Back to Top