RBI to buy govt securities via OMO for Rs 12,500 crore on Thursday

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

The central bank said it has decided to purchase certain government securities under Open Market Operations (OMO) for an aggregate amount of Rs 12,500 crore on March 7, 2019 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 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 RBI Core Banking Solution (E-Kuber) system before noon on Thursday.

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