The RBI noted yesterday that as announced vide Press Release dated December 18, 2018, the central bank has been monitoring the evolving liquidity conditions and durable liquidity requirements of the system, based on sustained changes in the behaviour of Currency in Circulation, the magnitude of sterilisation operations for RBI's forex operations and other relevant factors.
Accordingly, it has been decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 375 billion in the month of February 2019 through three auctions of Rs 125 billion each during the 2nd, 3rd and 4th week. There will be no auction during the first week due to the scheduled MPC meeting.
The auction dates and the Government securities to be purchased in the respective auctions would be communicated in due course. The OMO amount stated above is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions.
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