Why Is RBI Purchasing Government Securities Worth Rs 80,000 Crore?

The Reserve Bank of India (RBI) will conduct a fresh purchase auction of government securities under open market operations (OMO) for approximately Rs 80,000 crore, the central bank said in an official statement.

How & When Will This Transaction Be Made?

This will be carried out in four tranches of Rs 20,000 crore each, on April 3, April 8, April 22 and April 29.

RBI will monitor the evolving liquidity and the market conditions and take measures as appropriate to ensure orderly liquidity conditions, the statement said.

What Is The Objective?

This move is aimed to inject liquidity into the system, which is in line with the central bank's recent agenda and measures.

Previously, in March, it conducted OMO purchases of government securities worth Rs 1 lakh crore in two tranches of Rs 50,000 crore each.

RBI also held a dollar-rupee buy/sell swap auction worth $10 billion for 36 months.

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