New Delhi, Jan. 28 -- The Reserve Bank of India (RBI) announced a set of forex, money market and interest rate measures that will collectively infuse Rs.1.5 trillion over time, amid a clamour for liquidity from bankers and money market participants.Mint explains the significance of these measures.
The RBI announced three measures to boost liquidity in the system.
Firstly, the central bank 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, the RBI will buy G-Secs from the open market and inject liquidity into the system. The OMO auctions will take place on 30 January, and 13 and 20 February.
It will also conduct a 56-day variab...
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