Reserve Bank to infuse Rs 12,500 cr in economy through govt bond purchases

The Reserve Bank of India Tuesday said it will infuse Rs 12,500 crore of liquidity into the system through purchase of government bonds.

The Central bank would purchase five government bonds under open market operations (OMOs) on June 20.

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of five government securities under OMOs for an aggregate amount of Rs 12,500 crore on June 20, 2019 (Thursday)," RBI said in a release.

The Central bank would buy 7.94 per cent-2021; 7.72 per cent-2025; 6.79 per cent-2027; 7.61 per cent-2030 and 7.73 per cent-2034 government bonds under the OMO.

On June 11, the RBI had infused Rs 15,000 crore into the system through OMO purchase of six government bonds.