Profit

RBI To Inject Rs 10,000-Crore Liquidity Into System On Thursday

The move by the central bank was in line with its decision to boost the liquidity in the system by Rs 40,000 crore in December.

 Share
EMAIL
PRINT
COMMENTS
RBI To Inject Rs 10,000-Crore Liquidity Into System On Thursday

The RBI had injected Rs 40,000 crore worth of liquidity in November


Highlights

  1. RBI to purchase government bonds worth Rs 10,000 crore on Thursday
  2. Central bank to inject Rs 40,000 crore into system this month
  3. RBI has been boosting liquidity to ease concerns of cash crunch in NBFCs

The Reserve Bank of India on Tuesday announced injection of Rs 10,000 crore worth of liquidity into the system through purchase of government securities on December 6. The move by the central bank was in line with its decision to boost liquidity in the system by Rs 40,000 crore in December. The result of the auction would be announced on the same day and payment to successful participants would be made the following day, the RBI said in its statement.

The central bank's action on liquidity is likely to help ease a tight liquidity condition after a series of defaults by group companies of infrastructure financing and construction major IL&FS (Infrastructure Leasing and Financial Services) and credit rating downgrades triggered panic in the capital markets in September this year.

The RBI, from time to time, adjusts levels of availability of money in the system by way of sale or purchase of government bonds through its open market operations. It had injected Rs 40,000 crore worth of liquidity in November.

Last month, RBI eased rules for non-banking financial companies (NBFCs) to sell or securitise their loan books, in a bid to ease persistent stress in the sector. 

The central bank is due to release its fifth bi-monthly policy statement on Wednesday, in which the it is seen maintaining a status quo on key lending rates. Investors will look out for any change in its policy stance in Wednesday's statement and announcements on the liquidity front, say analysts.

(With agency inputs)



Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top