RBI to double OMO purchase size to Rs 40,000 crore for Feb 13 to boost liquidity
This decision aims to alleviate the ongoing liquidity deficit in the banking system.
RBI to double OMO purchase size to Rs 40,000 crore for Feb 13 to boost liquidity
The Reserve Bank of India has announced that it will double the size of its open market operations (OMO) purchases to Rs 40,000 crore on February 13, up from the previously announced Rs 20,000 crore.
This decision aims to alleviate the ongoing liquidity deficit in the banking system.
According to the apex bank's notification, "After reviewing the current and evolving liquidity conditions, the total amount for OMO purchases has been revised to Rs 40,000 crore." Eligible participants are required to submit their bids electronically through the RBI’s E-Kuber system between 10:30 AM and 11:30 AM on February 13, 2025.
In the event of a system failure, physical bids will be accepted at the Financial Markets Operations Department, with further details available on the RBI's website. The results of the auction will be announced on the same day, and successful participants must ensure that the securities are available in their Subsidiary General Ledger (SGL) account by 12:00 noon on February 14, 2025.
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Additionally, the RBI has set the notified amount for its daily Variable Rate Repo (VRR) auction at Rs 2 lakh crore on February 11. Last week, banks bid for twice the notified amount at the RBI’s 56-day VRR auction.
The central bank has already infused over Rs 1 lakh crore through bond purchases and dollar/rupee swaps, along with an additional Rs 50,000 crore via a 56-day repo auction.
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