Mumbai, Jan. 28 -- Relief arrived for India's parched banking system on Monday as the central bank rolled out measures to pump up liquidity, setting the stage for a potential interest rate cut next week. The Reserve Bank of India (RBI) announced a set of forex and money market measures that will collectively infuse Rs.1.5 lakh crore over time, amid a clamour for liquidity support.
The central bank said it will purchase government securities (G-Secs) worth Rs.60,000 crore through open market operations (OMOs) in three tranches of Rs.20,000 crore each. Through this measure, RBI will purchase G-Secs from the open market and inject liquidity into the system. The OMO auctions will take place on January 30, and February 13 and 20.
It will also ...