The Reserve Bank of India (RBI) on Monday announced the purchase of government securities in three installments and several other steps to increase liquidity (cash) in the banking system.
The RBI also announced the purchase/sales exchange of US $ 5 billion/rupee for a period of six months on January 31, 2025 as part of management measures for banking liquidity status.
The central bank asked to increase the liquidity that on January 30, February 13 and February 20, the free market operations (OMO) procurement of the securities of the Government of India will be organized for a total amount of Rs 60,000 crore in three installments of Rs 20,000 crore.
Apart from this, a 56-day variable rate repo (VRR) auction will also be held on February 7 for a notified amount of Rs 50,000 crore. The RBI said, “The central bank will continue to monitor the emerging liquidity and market conditions and take proper measures to ensure systematic cash status.” The central bank said that detailed instructions for each operation will be issued separately.
