RBI to infuse Rs 8,000 cr via OMO to ease market liquidity
The Reserve Bank will conduct open market operations to purchase government bonds worth Rs 8,000 crore on August 30 to ease liquidity in the market.
August 27, 2013 / 15:27 IST
The Reserve Bank will conduct open market operations to purchase government bonds worth Rs 8,000 crore on August 30 to ease liquidity in the market.
"Based on the current assessment of prevailing and evolving market conditions, the Reserve Bank has decided to conduct open market operations by purchasing...government securities for an aggregate amount of Rs 8,000 crore on August 30," it said today in a statement.Also read: Hike in base rate: What should you do?The RBI will buy government securities maturing in 2025 (bearing interest rate of 8.2 per cent), 2026 (8.33 per cent), 2032 (8.32 per cent) and 2042 (8.3 per cent).OMOs are conducted by the RBI by way of sale/purchase of government securities to/from the market with the objective of adjusting rupee liquidity conditions in the market on a durable basis.The RBI sells securities to suck out excess liquidity. When conditions are tight, the RBI buys securities from the market, releasing liquidity into the market. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
