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RBI to infuse Rs 8,000 cr via OMO to ease market liquidity
Mumbai, August 26, 2013, PTI: 23:23 IST
The Reserve Bank of India will conduct open market operations (OMO) 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 in a statement on Monday.
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.