The Reserve Bank of India on Friday said that it will conduct an auction on June 13 to purchase government securities under Open Market Operation (OMO) for ₹15,000 crore to infuse durable liquidity.
In the current financial year so far, it conducted OMO purchase of five government securities on two occasions — on May 2 and May 16 — infusing ₹12,500 crore in each auction. The total amount of government securities offered by market participants was ₹27,426 crore (face value) on May 2, and was ₹29,479 crore on May 16.
As per the first bi-monthly monetary policy statement for 2019-20, systemic liquidity moved from a daily net average surplus of ₹27,928 crore during February 1-6, into deficit during February 7- March 31, reflecting the build-up of government cash balances.
Currency in circulation expanded sharply in February-March. The liquidity needs of the system were met through injection of durable liquidity amounting to ₹37,500 crore in February and ₹25,000 crore in March through OMOs. Consequently, total durable liquidity injected by the RBI through OMOs aggregated ₹2,98,500 crore for 2018-19.