RBI to buy an additional Rs 400 billion worth of G-secs in December

With the latest announcement, OMO purchases by December-end will cross Rs 1.5 trillion

The Reserve Bank of India (RBI) has announced it will buy an additional Rs 400 billion worth of Government securities (G-Secs) in December, in addition to the Rs 400 billion planned for purchase in November.

The last lot of G-Secs for this month will be purchased on November 29, under its Open Market Operations (OMO), for an aggregate amount of Rs 100 billion. According to CARE Ratings, Rs 1.29 trillion of OMO purchases took place between April 1 and November 23, of which Rs 980 billion was purchased in the last three months.

The banking sector is facing its seventh consecutive week