RBI Injects Rs 50,000 Crore into Banking System Through OMO Purchases

The Reserve Bank of India (RBI) on Monday infused ₹50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities, according to an official release. As part of the operation, the central bank bought multiple government bonds, including 6.33% GS 2035 worth ₹13,507 crore, 6.01% GS 2030 valued at ₹13,494 crore, and 6.10% GS 2031 amounting to ₹8,157 crore. It also purchased 7.30% GS 2053 bonds worth ₹6,955 crore, 7.18% GS 2033 worth ₹4,479 crore, 6.92% GS 2039 worth ₹2,304 crore, and 6.19% GS 2034 valued at ₹1,104 crore.

The move comes as liquidity in the banking system remains in surplus, currently estimated at around ₹2.41 trillion. The OMO purchase auction was conducted in anticipation of heavy outflows expected later this month due to advance tax payments and Goods and Services Tax (GST) settlements. Despite the anticipated withdrawals, liquidity conditions in the banking system are presently comfortable, with the surplus estimated at about ₹3.02 trillion.

According to RBI data, the central bank has infused approximately ₹2.50 trillion into the banking system through OMO purchases of government securities since the beginning of this calendar year. The continued liquidity support is aimed at ensuring stable financial conditions and maintaining adequate funds in the banking system amid periodic tax-related outflows.

Pic Courtesy: google/ images are subject to copyright