RBI to inject Rs. 10,000 crore via OMO
The Reserve Bank of India on Tuesday said it would inject Rs. 10,000 crores into the Indian banking system through the purchase of government securities on December 6 to increase liquidity.
The purchase will be made through open market operations (OMOs) based on an assessment of the durable liquidity needs, going forward. RBI has decided to conduct the purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs. 10,000 crore on December 6, 2018.
Data released a few days ago showed that the economy suffered an unexpectedly sharp slowdown in the July-September quarter when the annual growth slid to 7.1 per cent from the two-year high of 8.2 per cent posted in the previous quarter.
RBI’s move is likely to help ease the tight liquidity conditions prevailing post the defaults of IL&FS group companies. IL&FS (Infrastructure Leasing and Financial Services) is an infrastructure financing and construction major.
Earlier, in the last week of November, RBI eased rules for non-banking financial companies (NBFCs) to sell or securitise their loan books, hoping that this would ease the stress experienced in the sector.
On Wednesday, Bank nifty opened at 26,572 and attained a high of 26619.