The Reserve Bank of India (RBI) on June 5 injected Rs 23,856 crore into the banking system through buyback of five government securities, conducted on the behalf of government, a notification by the central bank said.
In the last few months, the central bank has been infusing durable liquidity into the banking system through open market operation (OMO) purchases and USD/INR Buy/Sell swap auctions. Along with this, the RBI is also supporting liquidity through daily VRR auctions.
The buyback was in 7.27% GS 2026, 6.99% GS 2026, 6.97% GS 2026, 7.33% GS 2026, and 8.24% GS 2027 bonds.
The central bank accepted Rs 11,365.783 crore worth of 7.27% GS 2026 bonds, Rs 8,175.298 crore worth of 6.97% GS 2026 bonds, and Rs 2,553.703 crore worth of 8.24% GS 2027, release said. Further, the central bank also accepted Rs 1,106.208 crore worth of 7.33% GS 2026 bonds, and Rs 655 crore worth of 6.99% GS 2026 bonds.
For Rs 25,000 crore aggregate notified amount, the central bank received bids worth Rs 27,256 crore, of which Rs 23,856 crore was accepted.
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The heavy liquidity infusion was due to existing cash in the banking system starting to fall into deficit from mid-December last year. Liquidity operations have helped banking system to turned surplus, as currently, banking system has surplus of around Rs 3 lakh crore.
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