Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
1-min read

RBI to Inject Rs 12,000 Crore into System on October 11 to Manage Liquidity

The auction to purchase government bonds is a part of the Open Market Operations (OMO) to manage liquidity in the system which seems to be facing liquidity tightness.

PTI

Updated:October 9, 2018, 10:54 PM IST
facebookTwittergoogleskypewhatsapp
RBI to Inject Rs 12,000 Crore into System on October 11 to Manage Liquidity
Representative image.
Loading...
Mumbai: The Reserve Bank Tuesday announced it will inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds.

The government will purchase bonds with maturity ranging between 2020 to 2030, the RBI said in a statement.

The auction to purchase government bonds is a part of the Open Market Operations (OMO) to manage liquidity in the system which seems to be facing liquidity tightness.

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of the following government securities under Open Market Operations for an aggregate amount of Rs 120 billion on October 11, 2018 through multi-security auction using the multiple price method," it said.

The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on October 12, it said.

As part of the OMOs, the RBI will purchase government securities maturing in 2020 bearing interest rate of 8.27 per cent, 2022 (8.15 per cent), 2024 (7.35 per cent), 2026 (8.15 per cent) and 2030 (7.61 per cent).

The RBI said it has the right to decide on the quantum of purchase of individual securities and can also accept offers for less than Rs 12,000 crore.

It may as well purchase marginally higher than the aggregate amount due to rounding-off effect, it said, adding it can also accept of reject any or all the offers either wholly or partially without assigning any reason.

OMOs are the tools which can be used to either inject or drain liquidity from the system.

It is employed to adjust rupee liquidity conditions in the market on a durable basis.

If there is excess liquidity, the RBI resorts to sale of securities and sucks out the rupee liquidity. Similarly, when the liquidity conditions are tight, it buys securities from the market, thereby releasing money into the market.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 
Most Active
Company Price Change %Gain
Yes Bank 147.35 4.36
SBI 357.90 0.72
Reliance 1,326.00 -0.81
Larsen 1,571.55 1.77
HDFC 2,146.80 1.10
Company Price Change %Gain
Maruti Suzuki 7,124.25 0.40
Yes Bank 147.45 4.35
Larsen 1,570.00 1.71
SpiceJet 145.10 2.51
Reliance 1,326.00 -0.81
Top Gainers
Company Price Change %Gain
NTPC 135.35 4.80
Yes Bank 147.35 4.36
Tata Steel 497.00 2.65
Power Grid Corp 189.35 1.99
Cipla 583.20 2.21
Company Price Change %Gain
NTPC 135.45 4.84
Yes Bank 147.45 4.35
Tata Steel 496.55 2.70
Power Grid Corp 189.45 2.05
Larsen 1,570.00 1.71
Top Losers
Company Price Change %Gain
Bharti Airtel 347.90 -1.50
JSW Steel 282.00 -2.08
IndusInd Bank 1,625.95 -1.39
Tech Mahindra 724.55 -1.54
Zee Entertain 371.50 -1.42
Company Price Change %Gain
Bharti Airtel 346.85 -1.83
IndusInd Bank 1,626.35 -1.42
Tata Motors 180.20 -1.07
Bajaj Auto 3,052.45 -0.81
Asian Paints 1,374.40 -0.80

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results