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RBI to infuse Rs 12,500 crore into financial system through purchase of G-sec
Jun-14-2019

In order to meet the durable liquidity needs of the system going forward, the Reserve Bank of India (RBI) has said that it will infuse Rs 12,500 crore into the financial system through purchase of government securities (G-sec) under the Open Market Operation (OMO) on June 20, 2019.

It added 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 government securities to be purchased in the auction.

Recently, the RBI had 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) to regulate money supply in the market. The sale or buying of g-secs infuses or reduces liquidity.

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