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RBI to buy up to 100 billion rupees of government bonds via OMO on Dec. 7

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Reuters MUMBAI
Last Updated : Dec 03 2015 | 12:28 AM IST

MUMBAI (Reuters) - Reserve Bank of India said on Wednesday it will buy up to 100 billion rupees ($1.50 billion) of government bonds on Dec. 7 through open market operations to inject cash into the banking system, its first purchases from markets since Oct. 28.

The RBI will buy 7.83 percent 2018 bonds, 7.28 percent 2019 bonds, 8.40 percent 2024 bonds, and 7.88 percent 2030 bonds, the central bank said.

The cash injection should alleviate a recent liquidity deficit in the banking system.

The RBI will also conduct a 28-day variable repo auction for 250 billion rupees on Friday, it said.

(Reporting by Suvashree Dey Choudhury and Devidutta Tripathy; Editing by Rafael Nam)

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First Published: Dec 03 2015 | 12:21 AM IST

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