The Reserve Bank of India has announced that it will inject Rs. 8,000 crores into the system through the purchase of government securities on 22 November.

RBI released a statement,“ 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 80 billion on November 22, 2018 (Thursday).”

The Open Market Operations is expected to reduce the market liquidity tension created due to a series of default by group companies of IL&FS. RBI said that the eligible participants can submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on 22 November.

RBI is said to purchase government securities maturing in 2021 bearing an interest rate of 7.80%, 2024 (8.40%), 2026 (8.33%), 2028 (8.60%) and 2032 (8.28%). The bank said it has the right to decide on the quantum of purchase of individual securities and can also accept offers for less than Rs. 8,000 crore.

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