The Reserve Bank of India (RBI) on Tuesday said it would inject Rs 50,000 crore into the system in January 2019 through a purchase of government securities.
"Further, based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 500 billion in the month of January 2019. The operations will be conducted through five auctions of Rs 100 billion each," the central bank said in a release.
The RBI will detail the auction dates for the OMOs in due course.
However, it added that this OMO amount is indicative, with the RBI retaining the flexibility to change it, depending on the evolving liquidity and market conditions.
"On a review of the evolving liquidity conditions, it has been decided to scale up the amounts to be purchased in the remaining two OMO auctions scheduled in December 2018 to Rs 150 billion each. Consequently, the total injection of durable liquidity for the month of December 2018 would amount to Rs 500 billion," the RBI said.
First Published: IST