RBI to buy up to Rs 10,000 crores of govt bonds via OMO on Dec 7

The central bank will buy 7.83% 2018 bonds, 7.28% 2019 bonds, 8.40% 2024 bonds, and 7.88% 2030 bonds

Reserve Bank of India said on Wednesday it will buy up to Rs 10,000 crores ($1.50 billion) of government bonds on December 7 through open market operations to inject cash into the banking system, its first purchases from markets since October 28.

The RBI will buy 7.83% 2018 bonds, 7.28% 2019 bonds, 8.40% 2024 bonds, and 7.88% 2030 bonds, the central bank said.

The cash injection should alleviate a recent liquidity deficit in the banking system.

The RBI will also conduct a 28-day variable repo auction for Rs 25,000 crores on Friday, it said.

 

($1 = 66.5700 rupees)