The Reserve Bank of India on Monday said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system. As part of measures to manage liquidity conditions, the central bank also announced a USD/INR Buy/Sell Swap auction of USD 5 billion for a tenor of six months to be held on January 31, 2025.
To inject liquidity, RBI said open market operations (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 60,000 crore in three tranches of Rs 20,000 crore each will be held on January 30, February 13, and February 20.
Besides, a 56-day Variable Rate Repo (VRR) auction for a notified amount of Rs 50,000 crore will be held on February 7. “The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions,” the RBI said. Detailed instructions for each operation will be issued separately, it added.
The announcement comes just a few days before Union finance minister Nirmala Sitharaman will present Budget 2025 on Saturday, February 1. RBI announced that it will purchase government securities worth Rs 60,000 crore in three tranches to inject liquidity in the system. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
