RBI doubles OMO purchase to Rs 40,000 crore to ease liquidity crunch
With an aim to ease the persistent liquidity deficit in the banking system, the Reserve Bank of India (RBI) has doubled the amount of government securities it will purchase in the next round of open market operation (OMO) scheduled for February 13 to Rs 40,000 crore, from the Rs 20,000 crore announced earlier.
The RBI in its latest notification noted that on a review of current and evolving liquidity conditions, the aggregate amount of OMO purchase has now been revised to Rs 40,000 crore. Eligible participants must submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:30 am and 11:30 am on February 13, 2025.
Only in the event of system failure, physical bids will be accepted. Such physical bid should be submitted to Financial Markets Operation Department. The result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their SGL account by 12 noon on February 14, 2025.
