BUSINESS

RBI to infuse Rs 12,000 cr into market to ease liquidity

Source:PTI
June 08, 2012 19:41 IST
The Reserve Bank on Friday announced that it will pump in Rs 12,000 crore (Rs 120 billion) in the market on June 12 by buying government securities to ease the liquidity situation.

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on June 12, 2012," it said in a statement.

As part of the OMOs, the Reserve Bank of India (RBI) will purchase government securities maturing in 2020 (bearing interest rate of 8.19 per cent), 2021 (8.79 per cent), 2022(8.08 per cent) and 2024 (7.35 per cent).

The auction, it added, would be held through the multi-security auction using the multiple price method.

The RBI on May 25 had pumped in Rs 11,194.25 crore in the system through the OMOs as against the notified amount of Rs 12,000 crore.

The central bank has been using the OMO tool, under which it purchases government securities from banks and other institutions to improve the liquidity situation.

Source: PTI
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