New Delhi: The Reserve Bank of India (RBI) will inject liquidity of Rs 30,000 crore through open market operations next week to maintain financial stability in the system in the wake of the coronavirus outbreak. 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.
