RBI injects Rs 50,000 crore into banking system through OMO purchases
Mumbai, March 9 : The Reserve Bank of India on Monday injected Rs 50,000 crore into the banking system by purchasing government securities through an Open Market Operation (OMO), aiming to maintain comfortable liquidity conditions ahead of expected tax-related outflows.
Under the operation, the central bank purchased several bonds with different maturity periods.
These included 6.33 per cent government securities maturing in 2035 worth Rs 13,507 crore and 6.01 per cent bonds maturing in 2030 worth Rs 13,494 crore. It also bought 6.10 per cent bonds due in 2031 worth Rs 8,157 crore.
Other purchases included 7.30 per cent bonds maturing in 2053 worth Rs 6,955 crore and 7.18 per cent securities due in 2033 worth Rs 4,479 crore.
The RBI also acquired 6.92 per cent bonds maturing in 2039 worth Rs 2,304 crore and 6.19 per cent securities due in 2034 worth Rs 1,104 crore.
Open Market Operations are used by the central bank to manage liquidity in the banking system by buying or selling government bonds in the market. When the RBI buys securities, it injects money into the banking system.
According to the RBI, liquidity in the banking system is currently estimated to be in surplus of around Rs 2.41 trillion.
However, the OMO purchase auction was conducted ahead of expected large outflows due to advance tax payments and Goods and Services Tax collections scheduled later this month.
Even with the expected outflows, liquidity conditions in the banking system remain comfortable, with surplus liquidity estimated at about Rs 3.02 trillion.
Data from the RBI shows that the central bank has infused around Rs 2.50 trillion into the banking system through OMO purchases of government securities since the beginning of this calendar year.
Under the operation, the central bank purchased several bonds with different maturity periods.
These included 6.33 per cent government securities maturing in 2035 worth Rs 13,507 crore and 6.01 per cent bonds maturing in 2030 worth Rs 13,494 crore. It also bought 6.10 per cent bonds due in 2031 worth Rs 8,157 crore.
Other purchases included 7.30 per cent bonds maturing in 2053 worth Rs 6,955 crore and 7.18 per cent securities due in 2033 worth Rs 4,479 crore.
The RBI also acquired 6.92 per cent bonds maturing in 2039 worth Rs 2,304 crore and 6.19 per cent securities due in 2034 worth Rs 1,104 crore.
Open Market Operations are used by the central bank to manage liquidity in the banking system by buying or selling government bonds in the market. When the RBI buys securities, it injects money into the banking system.
According to the RBI, liquidity in the banking system is currently estimated to be in surplus of around Rs 2.41 trillion.
However, the OMO purchase auction was conducted ahead of expected large outflows due to advance tax payments and Goods and Services Tax collections scheduled later this month.
Even with the expected outflows, liquidity conditions in the banking system remain comfortable, with surplus liquidity estimated at about Rs 3.02 trillion.
Data from the RBI shows that the central bank has infused around Rs 2.50 trillion into the banking system through OMO purchases of government securities since the beginning of this calendar year.