The purchase will be made through Open Market Operations(Omo).
RBI to inject Rs 37,500 crore through Omo in February.
A central bank uses Omo as the primary means of implementing monetary policy.
The Omo plan is in continuation with the central bank's
practice in the last financial year.
Two Omo purchase auctions amounting to ₹27,500 crore were conducted in June,
thereby injecting durable liquidity into the system.
As part of the Omo, the RBI will sell government securities maturing in 2019,
2021, 2022, 2024, & 2030.
On June
11, the RBI had infused ₹15,000 crore into the system through Omo purchase of six government bonds.
On June 11,
the RBI had infused Rs 15,000 crore into the system through Omo purchase of six government bonds.
Last week, the RBI had said it will simultaneously purchase and
sell government securities under open market operations(Omo) of Rs 10,000 crore each.
In the third special open market operation(Omo), the RBI bought ₹10,000 crores of three long-term securities
and sold the same amount of three short-term bonds.
Called open market operations(Omo) the Federal Reserve(the Fed)
buys bonds on the open market, reducing their availability and pushing the price of the remaining bonds up.
In the third special open market operation(Omo), the RBI bought how many crores of three long-term securities
and sold the same amount of three short-term bonds?
An open market operation(Omo) is an activity by a central bank to give(or take)
liquidity in its currency to(or from) a bank or a group of banks.
Based on an assessment of prevailing liquidity conditions and of durable liquidity needs going forward,
the Reserve Bank conducted two open market operation(Omo) purchase auctions of ₹ 100
billion each on June 21 and July 19, 2018.
Apart from liquidity injections through LAF operations,
the Reserve Bank conducted two Omo purchase auctions in May amounting to ₹25,000 crore
and a US dollar buy/sell swap auction of US$ 5 billion(₹34,874 crore) for a tenor of 3 years in April to inject durable liquidity into the system.