Money & Banking

RBI plans open market operations

Our Bureau Mumbai | Updated on May 28, 2013 Published on May 28, 2013

RBI Deputy Governor, H.R. Khan

The Reserve Bank of India is looking at conducting open market operations (OMO) after assessing the Government's cash balance, according to Deputy Governor, H.R. Khan.

"We will assess (the liquidity situation) and then see what the government balance is...wether it is short term or long term," Khan told reporters on the sidelines of a conference on Business Correspondent Model to check financial inclusion.

According to Khan, the Government balance is quite substantial.

"Government cash balance is high...as we are seeing June advance tax coming," he said.

We are assessing the situation and will come out with OMO, Khan added.

Further, liquidity within the banking system still remains tight as the daily liquidity borrowings by banks under the RBI's Liquidity Adjustment Facility is close to about Rs 1 lakh crore.

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Published on May 28, 2013
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