RBI to shift Rs 45,000 cr from MSS to govt cash

Reserve Bank of India today said it will transfer Rs 45,000 crore from its market stabilisation scheme cash account, in tranches, to the government’s normal cash account by March 31.

An equivalent amount of bonds issued earlier under MSS will now form a part of the government’s regular market borrowing, RBI said. An agreement to this effect was signed on Thursday.

The Centre is looking to raise an additional Rs 91,000 crore by the end of the financial year. The move will help the government lower its open market borrowings and ensure adequate liquidity in the system.

OMO on Thursday
The Reserve Bank of India also said that it will purchase government securities worth Rs 6,000 crore through open market operation (OMO) auction on Thursday. It has also kept option to buy additional securities buy up to Rs 3,000 crore. The securities will be bought through single price auction, the central bank said in a statement.