To improve the liquidity condition, the Reserve Bank of India (RBI) has said that it will infuse Rs 15,000 crore into the financial system through bond purchases on Thursday.
“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct the purchase of (six) Government securities under open market operations (OMOs) for an aggregate amount of Rs 150 billion on June 13, 2019 (Thursday) through multi-security auction using the multiple price method,” RBI said in a statement.
There is an overall aggregate ceiling of Rs 15,000 crore for all the securities in the basket put together and there is no security-wise the notified amount, the central bank added.
The participants have to submit their offers in electronic format on the central bank Core Banking Solution (E-Kuber) system.
The result will be announced on the same day and payment to successful participants will be made on the following day.
The RBI uses OMO for injecting liquidity into the system through the purchase of government bonds (G-sec).