On a review of the evolving liquidity conditions, it has been decided to scale up the amounts to be purchased in the remaining two OMO auctions scheduled in December 2018 to ₹ 150 billion each. Consequently, the total injection of durable liquidity for the month of December 2018 would amount to ₹ 500 billion.

Further, based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of Government Securities under Open Market Operations (OMOs) for an aggregate amount of ₹ 500 billion in the month of January 2019. The operations will be conducted through five auctions of ₹ 100 billion each.

The liquidity conditions will continue to be monitored and depending on the assessment, RBI will consider similar quantum of OMO purchases until end of March 2019. The exact calibration of the quantum of OMO would depend on sustained changes in the behaviour of currency in circulation, the magnitude of sterilisation operations for RBI’s forex operations and other relevant factors.

The auction dates and the Government securities to be purchased in the respective auctions would be communicated in due course. The OMO amount stated above is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1398