SME Times News Bureau | 25 May, 2019
The Reserve Bank of India (RBI) on Friday said that it will
inject Rs 15,000 crore through open market operations (OMOs) on June 13.
The move by the central bank is to ease liquidity concerns.
Open market operations (OMOs) are conducted by the RBI by
sale or purchase of government securities (g-secs) to regulate money supply in
The sale or buying of g-secs infuses or reduces liquidity. OMOs like repo rate,
cash reserve ratio and statutory liquidity ratio are monetary policy tools to
"Based on a review of the evolving liquidity conditions and assessment of
the durable liquidity needs going forward, the RBI has decided to conduct
purchase of government securities under OMO for Rs 150 billion on June 13,
2019," the apex bank said in a statement.
The financial sector has been facing liquidity crunch ever since the
Infrastructure Leasing and Financial Services Ltd (IL&FS) defaulted in its
payment obligations, triggering reluctance among lenders to lend to the Non
Banking Financial Company (NBFC) sector.