On a review of the evolving liquidity conditions, it has been decided to continue with the Open market operations (OMO) purchase auctions in March 2019, noted the Reserve Bank Of India (RBI) in a latest update. Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct the purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 250 billion during the first fortnight of March 2019 through two auctions of Rs 125 billion each.
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. The liquidity conditions will continue to be monitored and depending on the assessment, RBI will consider further liquidity operations and the choice of instruments.
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