RBI liquidity News
System liquidity moved from a surplus of Rs 1.35 lakh crore in November to a deficit of Rs 0.65 lakh crore in December, further to Rs 1.58 lakh crore deficit in January (till January 16).
The banks would be exempted from the ISDA requirements for the purpose of these swaps.
The purchase will be made through open market operations (OMOs).
The central bank also cut its estimates on headline inflation.
The OMO operation will help ease tight liquidity situation triggered by series of default by group companies of IL&FS.
The auctions to purchase government bonds as part of the Open Market Operations (OMO) to manage liquidity in the system will be conducted in the second, third and fourth week of October.
The Reserve Bank today said it will buy government securities via open market operations (OMOs) on March 10 to infuse liquidity of Rs 15,000 crore into the system.
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