Last week, the central bank said had announced to inject Rs 40,000 crore into the system in November through the purchase of government securities as it looks to meet festive season demand for funds.
"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct the purchase of the following Government securities under Open Market Operations for an aggregate amount of Rs 120 billion on November 01, 2018 (Thursday)...," it said in a statement.
The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 01.
The result of the auction will be announced on the same day and payment to successful participants will be made the following day.
The RBI had earlier stated that the system liquidity will move into deficit in the second half of 2018-19 and the evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management.
(With inputs from agencies.)