RBI to inject over Rs30,000 crore to boost liquidity

13 Dec 2010

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The Reserve Bank of India (RBI) today bought bonds worth over Rs20,000 crore from banks and announced plans to purchase Rs12,000 crore of government bonds, as part of its open market operations.

This will inject over Rs30,000 crore into the system and help banks tide over the cash shortage arising from the busy credit season and impending advance tax payments.

RBI received 17 bids for a total of Rs13,025 crore for the 6.25 per cent fixed rate repo (purchase of securities) under the second liquidity adjustment facility today.

Against this, RBI received 2 bids for a total of Rs490 crore at the 5.25 per cent fixed rate reverse repo auctions (sale of securities) at today's auctions.

RBI received 49 bids for a total of Rs89,545 crore under the 6.25 per cent fixed rate repo auction today under the regular LAF while it received 2 bids for a total of Rs1,250 core for the 5.25 per cent fixed rate reverse repo auction.

RBI will purchase the 7.02 per cent 2016 government paper maturing on 17 August 2016; 7.99 per cent 2017 paper maturing on 9 July 2017 and 8.13 per cent 2022 paper maturing on 21 September 2022, for an aggregate amount of Rs12,000 crore through multi-security auction using the multiple price method.
 
The auction will be conducted by the Reserve Bank of India, at its Fort, Mumbai office on 15 December 2010, RBI said.

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