RBI Doubles Open Market Operations to Rs 40,000 Crore

The Reserve Bank of India has increased its open market operations (OMO) bid from Rs 20,000 crore to Rs 40,000 crore to address liquidity concerns. This strategic move comes after announcing a liquidity injection of Rs 1.5 lakh crore, involving multiple OMOs, VRR auctions, and USD/INR swaps.

The Reserve Bank of India (RBI) has made a significant adjustment to its planned open market operations, doubling its previously scheduled purchase amount from Rs 20,000 crore to Rs 40,000 crore. This decision reflects a strategic response to current and evolving liquidity conditions in the economy.

Last month, the RBI outlined a comprehensive plan to inject Rs 1.5 lakh crore into the banking system. The plan includes three OMOs each worth Rs 20,000 crore, a Variable Rate Repo (VRR) auction of Rs 50,000 crore, and a USD/INR Buy/Sell Swap auction amounting to USD 5 billion.

The decision to revise the OMO purchase amount underscores the RBI's proactive approach to managing liquidity, ensuring stability within the financial market. This increase in OMO purchases highlights the central bank's commitment to supporting the banking system and maintaining economic stability.

(With inputs from agencies.)