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The RBI will inject another amount of cash in December by injecting 40,000 crores of RS into the system through open market operations (OMO).
"After an badessment of the need for sustainable cash, the RBI decided to proceed with purchases of government securities in the context of open market operations for a total amount of 400 billion rupees in the month of December 2018, "said the central bank in a statement released Tuesday.
The Reserve Bank will detail the auction dates for OMOs in a timely manner.
However, he added that this amount was indicative, the RBI retaining the ability to modify it, depending on the evolution of liquidity and market conditions.
The RBI had announced its intention to inject 40,000 Rs. Crore into the system in November. He has already injected 30,000 crores of rupees into the system, while the remaining cash would be auctioned on 29 November.
"Based on an badessment of existing liquidity conditions and sustainable liquidity requirements, the Reserve Bank decided to proceed with the purchase of the following public securities under OMO for a total amount of 100 billion rupees on November 29, 2018 by multi-securities auction using the multiple pricing method, "said RBI in a separate statement.
In October, the central bank had already injected 36,000 crores of rupees into the system through OMOs.
The RBI had previously stated that the liquidity of the system would be in deficit in the second half of 2018-19 and that the evolving liquidity conditions would determine its choice of transitional and sustainable liquidity management instruments.
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