Mumbai, March 5 (IANS) To ease liquidity concerns, the Reserve Bank of India (RBI) on Tuesday said it will inject Rs 12,500 crore through open market operations (OMOs) on March 7.
“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of… Government securities under Open Market Operations for an aggregate amount of Rs 125 billion (Rs 12,500 crore) on March 7, 2019 (Thursday) through multi-security auction using the multiple price method,” the RBI said in a release.
“There is an overall aggregate ceiling of Rs 125 billion for all the securities in the basket put together. There is no security-wise notified amount.”
The financial sector has been facing liquidity crunch for more than four months since the Infrastructure Leasing and Financial Services Ltd (IL&FS) defaulted in its payment obligations, triggering reluctance among lenders to lend to the NBFC sector.