RBI to infuse 12,500 crore through OMO, plans to buy govt securities

The Reserve Bank of India (RBI) Tuesday said it would infuse Rs 12,500 crore into the system through open market operations.

The RBI said it has decided to conduct purchase of certain government securities under open market operations (OMOs) for an aggregate amount of Rs 12,500 crore on February 28 through multi-security auction using the multiple price method.

The decision on OMO is based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, it added.

"There is an overall aggregate ceiling of Rs 125 billion for all the securities in the basket put together. There is no security-wise notified amount," RBI said.

It further said the eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system between before noon on Thursday.

The result of the auction will be announced on Thursday and payment to successful participants will be made during banking hours on the following day.