BUSINESS

RBI advances second tranche of OMO

The Reserve Bank of India (RBI) has advanced its liquidity infusion plan by purchasing government bonds.

The RBI had announced open market operations (OMOs) of Rs. 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 Rs. 15,000 crore to March 26, 2020,” the RBI said.

The RBI also said to tide over any frictional liquidity needs due to COVID-19, it had decided to conduct the variable rate repo auctions for Rs. 1,00,000 crore in two tranches.

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