The Reserve Bank of India (RBI) has said that it will pump Rs 12,500 crore into the financial system through bond purchases on June 20.
The central bank said in a statement that, ” The decision has been taken based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward.”
The purchase of government securities under the Open Market Operation (OMO) for Rs 12,500 crore will be conducted on June 20. The government securities to be purchased in the auction would be communicated in due course, the RBI added.
On Thursday, the central bank injected Rs 15,000 crore into the system through bond purchases.
The RBI uses OMO for injecting liquidity into the system through the purchase of government bonds (G-sec).