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
Real Estate

LML Realty Launches Cinema Campaign on Industrial Vision

LML Realty has launched a cinema advertising campaign in partnership with PVR INOX across 81 screens in Gurugram and Faridabad, showcasing the brand’s transformation from a mobility icon to an industrial infrastructure developer.The campaign features a cinematic brand film tracing LML’s journey since 1972, beginning with its iconic scooters and highlighting its evolution into creating infrastructure solutions that support India’s manufacturing growth.The film focuses on LML Industrial Park at Jhirka Valley, the company’s flagship industrial development approved under the Haryana Govern..

Next Story
Real Estate

IIM Ahmedabad Publishes Case Study on HoABL’s Business Model

The Indian Institute of Management Ahmedabad (IIMA) has published a case study on The House of Abhinandan Lodha (HoABL), examining the company’s digital-first consumer journey and business model that created India’s branded land category.Titled “HoABL: Ready for Scaling Up”, the case study has been published by the IIMA Case Centre and co-authored by Sourav Borah, Associate Professor of Marketing at IIMA, and Dr Aparna Kansal of IMT Ghaziabad. IIMA case studies are used across management and executive education programmes to help students and business leaders analyse strategic decision..

Next Story
Infrastructure Energy

Advait Energy and MEIL Partner for Energy Transition Projects

Advait Energy Transitions Limited (AETL) and Manipal Energy Infratech Limited (MEIL), a company of The Manipal Group, have entered into a strategic Memorandum of Understanding (MoU) to collaborate on power and energy transition opportunities across India and international markets.The partnership aims to combine AETL’s expertise in innovative energy technologies and manufacturing with MEIL’s EPC execution capabilities and project management experience. The collaboration will focus on opportunities across Power Transmission & Distribution, Renewable Energy, Battery Energy Storage Systems..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement