Banks placed offers to sell six government securities (G-Secs) aggregating ₹1,87,503 crore, about 4.68 times the amount the RBI notified for purchase at the open market operation (OMO).
The central bank infused liquidity equal to the notified amount of ₹40,000 crore in the banking system through the OMO purchases.
The RBI conducted the OMO purchase of G-Secs as part of its measures to alleviate liquidity tightness in the banking system, which has arisen due to advance tax and GST outflows and RBI’s intervention in the forex market.
Six G-Secs
In descending order of G-Secs/GS purchased by amount, RBI bought 7.41 per cent GS 2036 the most (₹10,005 crore), followed by 7.17 per cent GS 2030 (₹9,918 crore), 7.18 per cent GS 2037 (₹7,061 crore), 7.18 per cent GS 2033 (₹4,585 crore), 7.10 per cent GS 2034 (₹4,340 crore) and 6.79 per cent GS 2034 (₹4,091 crore).
Liquidity tightness in the banking system is underscored by the fact that banks put in bids aggregating ₹1,33,829 crore to draw funds from RBI at the daily variable rate repo (VRR) auction on Thursday against the notified amount of ₹1 lakh crore.
The central bank accepted bids aggregating ₹1,00,022 crore at the weighted average rate of 6.28 per cent.
At the overnight VRR auction, also conducted on Thursday, RBI received bids aggregating ₹32,916 crore against the notified amount of ₹50,000 crore. It accepted all the bids at the weighted average rate of 6.26 per cent.
