 "Reserve Bank of India, RBI")
The Reserve Bank of India (RBI) on Tuesday announced an open market operation (OMO) to pump ₹80,000 crore into the banking system. The move, which comes just a week ahead of the April monetary policy committee (MPC) review meeting, is aimed at ensuring the effective transmission of policy rate cuts, according to bankers.
The RBI’s announcement also comes days after the banking system’s liquidity — measures of the central bank’s infusion/absorption through the liquidity adjustment facility — turned surplus (on Saturday and Sunday) after a gap of over four months. Surplus liquidity aids the transmission of policy rates during an
