RBI to inject Rs 30,000 Cr liquidity into market next week
PrintListen to this Article
The RBI has decided to conduct purchase of government securities under open market operations (OMOs) for an aggregate amount of Rs 30,000 crore in two tranches of Rs 15,000 crore each in March, the central bank said in a statement.
The auctions would be conducted on March 24 and March 30, it said.
It said, "With the COVID-19 related dislocations, stress in certain financial market segments is still severe and financial conditions remain tight. The RBI's endeavour is to ensure that all markets segments function normally with adequate liquidity and turnover."
The central bank infused Rs 10,000 crore through open market operations on Friday.
It will purchase securities with a coupon rate of 6.84 per cent (maturity December 19, 2022); 7.72 per cent (May 25, 2025); 8.33 per cent (July 9, 2026) and 7.26 per cent (January 14, 2029).
The RBI said there is no notified amount against any of these securities within the aggregate ceiling of Rs 15,000 crore set for the operation.
The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than or higher than the aggregate amount of Rs 15,000 crore (including due to rounding off) and also to accept or reject any or all the offers either wholly or partially without assigning any reason.
Earlier on Monday, RBI governor Shaktikanta Das said the regulator has "enough policy tools and stands ready to take any measures" needed to help the economy tide over the impact of the coronavirus pandemic.
In two liquidity-enhancing measures, Das announced another round of $2 billion dollar-rupee swap on March 23, and in another measure, he said the RBI will continue to conduct the long-term repo operations (LTROs) of up to Rs 1 lakh crore as and when the market needs it.
On March 16, the RBI conducted the first dollar-swap for $2 billion under which the central bank buys rupee from the market by selling dollars.
On the LTROs, it has already conducted four rounds worth Rs 1 lakh crore operations since February 14, after announcing it at the February 6 policy review.
OMOs are money market tools to suck or inject liquidity into the system. When there is enough liquidity, the RBI resorts to selling of government securities to take out money supply, while it purchases the same when the market needs the money. #casansaar (Source - PTI, Times of India)
Category : RBI | Comments : 0 | Hits : 1007
Listing of an Indian company on international stock exchanges got a push with the Reserve Bank of India (RBI) coming out with regulations under Foreign Exchange Management (FEMA). Experts believe new regulations will help companies utilise foreign exchange more effectively. Regulations have been made public through two notifications. First set of regulations deals with mode of payment and reporting of non-debt instruments. “The proceeds of purchase / subscription of equity shares of an ...
The Lok Sabha elections 2024 are in full swing with electioneering adding much colour to the entire process. However, to ensure that there is no wrongdoing, the Reserve Bank of India (RBI) has sent a missive to Payment System Operators (PSOs) asking them to keep a watch on all suspicious high-value transactions that they may come across in their systems. The general purpose of the letter is to deny the use of electronic fund transfer mechanism to anyone who is intending to influence the election...
he Reserve Bank on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem. The draft also covers the physical point-of-sale activities of payment aggregators (PAs). The RBI said that given the growth in digital transactions and the significant role that PAs play in this space, the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations ...
The RBI on Monday eased rules to allow resident entities to hedge their exposures to the price risk of gold using the OTC derivatives in the International Financial Services Centre (IFSC) in addition to the derivatives on the exchanges in the IFSC. Resident entities such as banks were permitted to hedge their exposure to the price risk of gold on the exchanges in the IFSC that are recognised by the International Financial Services Centres Authority (IFSCA), and the new directive provides them...
The Reserve Bank of India (RBI) on March 21 said it has imposed monetary penalty on five co-operative banks for rule violations. These banks are Pragati Mahila Nagrik Sahakari Bank, Janata Co-operative Bank, Jila Sahakari Kendriya Bank, Karad Urban Co-operative Bank, and The Kalupur Commercial Co-operative Bank. The central bank imposed Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh...
Comments