Context:
RBIs first Open Market Operation (OMO) purchase auction received 12 trillion in bids against a notified amount of 20,000 crore. High demand led to cutoff prices being set below secondary market prices
RBI rejected all bids for the 7.59 per cent GS 2029 bond.
RBIs Liquidity Injection Plan
- RBI announced 60,000 crore in OMO purchases over three auctions.
- Aim
- Inject durable liquidity into the banking system to address liquidity deficit.
- Current banking system liquidity deficit 255 trillion as of 29 Jan 2025.
