The Reserve Bank of India (RBI) has advanced its liquidity infusion plan by purchasing government bonds following a review of ‘current liquidity and financial conditions,’.
The RBI had announced open market operations (OMOs) of ₹30,000 crore in March 2020 — the first tranche was scheduled for March 24 and the second tranche for March 30.
“On a review of current liquidity and financial conditions, the Reserve Bank has decided to advance the second tranche of purchase of government securities under OMOs for ₹15,000 crore to March 26, 2020,” the RBI said.
In a separate communication, the RBI also said as a pre-emptive measure to tide over any frictional liquidity needs due to COVID-19, it had decided to conduct the variable rate repo auctions for ₹1,00,000 crore in two tranches. The first tranche of ₹50,000 crore was be conducted on Monday and the next tranche on Tuesday.