RBI to Inject Rs 1.25 Trillion Liquidity through Bond Purchases
ECONOMY & POLICY

RBI to Inject Rs 1.25 Trillion Liquidity through Bond Purchases

The Reserve Bank of India (RBI) announced its plan to purchase government bonds worth Rs 1.25 trillion through open market operations (OMOs) in four separate tranches during May, as part of its continued efforts to inject liquidity into the banking system.

According to the schedule, the first tranche amounting to Rs 500 billion is set for May 6, while the remaining three tranches of Rs 250 billion each will take place on May 9, 15, and 19. This move follows the RBI’s liquidity support measures in April, during which it infused Rs 1.2 trillion through debt purchases and foreign exchange swaps. Additionally, the central bank is set to purchase bonds worth Rs 200 billion on Tuesday, marking the final tranche for April.

Earlier in the month, the RBI had also cut the repo rate for the second consecutive time and shifted its policy stance to "accommodative" to further support the economy.

In a press conference held after the monetary policy announcement on April 9, Governor Sanjay Malhotra indicated that the RBI intended to maintain an adequate liquidity surplus in the banking system to facilitate effective transmission of policy rates. He noted that the desired surplus level was around 1 per cent of total deposits, which translates to approximately Rs 2.20 trillion to Rs 2.50 trillion.

As per the RBI’s data, the daily average surplus in the banking system for the week ending April 25 stood at Rs 809 billion, a decline from Rs 1.78 trillion recorded the previous week.

News source: Business Standard

The Reserve Bank of India (RBI) announced its plan to purchase government bonds worth Rs 1.25 trillion through open market operations (OMOs) in four separate tranches during May, as part of its continued efforts to inject liquidity into the banking system. According to the schedule, the first tranche amounting to Rs 500 billion is set for May 6, while the remaining three tranches of Rs 250 billion each will take place on May 9, 15, and 19. This move follows the RBI’s liquidity support measures in April, during which it infused Rs 1.2 trillion through debt purchases and foreign exchange swaps. Additionally, the central bank is set to purchase bonds worth Rs 200 billion on Tuesday, marking the final tranche for April. Earlier in the month, the RBI had also cut the repo rate for the second consecutive time and shifted its policy stance to accommodative to further support the economy. In a press conference held after the monetary policy announcement on April 9, Governor Sanjay Malhotra indicated that the RBI intended to maintain an adequate liquidity surplus in the banking system to facilitate effective transmission of policy rates. He noted that the desired surplus level was around 1 per cent of total deposits, which translates to approximately Rs 2.20 trillion to Rs 2.50 trillion. As per the RBI’s data, the daily average surplus in the banking system for the week ending April 25 stood at Rs 809 billion, a decline from Rs 1.78 trillion recorded the previous week. News source: Business Standard

Next Story
Infrastructure Transport

NF Railway Launches Girder on World’s Tallest Pier Bridge in Manipur

The Northeast Frontier Railway (NFR) has reached a significant engineering milestone by successfully completing the girder launch on the iconic Noney Bridge in Manipur.Regarded as an engineering marvel, the Noney Bridge is recognized as the world’s tallest railway pier bridge. It forms a crucial part of the 111 km long Jiribam-Imphal railway line project.Recently, the final span of the bridge was successfully erected, marking the completion of all eight spans of this monumental infrastructure venture.Kapinjal Kishore Sharma, Chief Public Relations Officer of NFR, stated that this accomplishm..

Next Story
Infrastructure Urban

Cube Highways Trust Reports Rs 34.53 Bn Total Income in FY25

Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors, concluded its second financial year post-listing on a strong note by reporting a total consolidated income of Rs 34.53 billion for the financial year 2025, marking a 12.3 percent year-on-year (YoY) increase.According to the official media release, Cube InvIT posted a consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 2,380 crore, reflecting a 21.7 percent YoY growth. During the year, traffic volumes increased by 6.2 percent, while the Asset Under Management (AUM) grew 25 percent to ..

Next Story
Infrastructure Transport

New Flyover to Ease Traffic on Hyderabad’s Busiest Road

To improve urban connectivity and reduce traffic congestion in the city, the Greater Hyderabad Municipal Corporation (GHMC) will undertake the construction of a two-lane unidirectional flyover at NFCL Junction in Banjara Hills, along with a two-lane unidirectional underpass and a three-lane unidirectional flyover at TV9 Junction, as part of the state government’s prestigious Hyderabad City Innovative and Transformative Infrastructure (H-CITI) programme.The NFCL Junction flyover will be a two-lane unidirectional structure extending from Banjara Hills Road No. 3 towards GVK Mall. It is planned..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?