Mumbai: RBI said on Friday that it will buy a government of various maturity collected Rs 40,000 crore on 17 April. This will be procured by the central bank in the current financial year, the third open market operations (OMO) purchase of gilts. The first of the Rs 20,000 crore was held on 3 April, while the second, the same amount was on 8 April.
A date fund manager said that OMO purchases in line with the central bank’s policy to infect the liquidity to the tune of 1% of the time liabilities (NDTL) in the banking system. Currently, the NDTL of the banking system is around Rs 250 lakh crore. Therefore, the expected liquidity infusion will be around 2.5 lakh crore rupees, the fund managers said.
Since January 2025, the central bank has affected the liquidity of about Rs 7 lakh crore in the banking system, showing official data. With liquidity infusion, two rates were deducted by RBI, one -one -February and April. The joint effect is now about 6.5% level about the decline in benchmark yield on the 10-year gilt. This, in turn, has reduced interest rates on loans by banks and NBFCs. Recently, the central bank has changed the way the banking system measures liquidity. It said that from now on it would consider the system liquidity to infect money in the banking system rather than durable liquidity, which was the first benchmark.
In addition to liquidity in the banking system, the latter also takes into account the cash balance with the government, which can be spent at any time, thus infects liquidity in the banking system. Conversely, the system liquidity considins only the money available in the banking system, and thus usually is uniform or less than durable liquidity.
