The announced open market operations will involve RBI purchasing government securities valued at Rs 1 trillion, to be conducted in two separate tranches of Rs 50,000 crore each. These auctions are scheduled for March 12 and March 18, respectively.

RBI Announces Rs 1 Lakh Crore Bond Purchases, $10 Billion Swap to Boost Liquidity - The Reserve Bank of India (RBI) unveiled major liquidity measures, including open market operation

The central bank in a statement said that the measures, purchase of government bonds under open market operations (OMO) and foreign currency swaps, taken on a review of current and evolving liquidity

Mumbai: The RBI’s move to inject Rs 1.9 lakh crore has come as a big positive for banks, which is reflected in the rise in the stock prices of both private and public sector banks, as well as Non-Banking Financial Companies (NBFCs) Thursday.

The RBI has announced liquidity infusion of Rs 1 lakh crore into the banking system through open market opearations (OMO). The move follows an earlier round of liquidity infusion announced in January.

RBI’s liquidity measures include OMO purchase auctions of government securities and a USD/INR forex swap, with detailed instructions to be issued separately.

India’s monetary authority will pump in another $21.5 billion worth of cash via bond purchases and a forex swap as the banking system braces for financial year-end tightness in liquidity before March 31.

The Reserve Bank of India (RBI) on Wednesday said that it will infuse liquidity through Open Market Operations (OMO) purchases and USD/INR Buy/Sell swap auctions. The Reserve Bank has decided to conduct the following operations to inject liquidity into the banking system: OMO purchase auctions of Government of India securities for an aggregate amount of Rs 100,