RBI buys bonds worth Rs 12,000 crore via OMOs
The Reserve Bank of India bought government securities worth Rs 12,000 crore on Friday through open market operations to infuse liquidity into the system.
RBI in a circular said that it conducted open market operations by purchasing the government securities for an aggregate amount of Rs 12,000 crore on June 22, 2012 through multi-security auction using the multiple price method.
Four securities maturing in 2018, 2021, 2030 and 2032 are on offer for OMO.
RBI chose not to touch key rates such as cash reserve ratio, repo or reverse repo in order to rein in inflation amid slowing growth. It had infused Rs 48,000 crore by cutting cash reserve ratio on March 15 in its mid quarter review of the monetary policy. Banks have been borrowing over Rs 1 lkh crore heavily from the repo window
In addition, the Reserve Bank announced auction of treasury bills of 364-day and 91 day worth Rs 5,000 crore and Rs 10,000 crore on June 27, 2012 using multiple price auction method.
The government has plans to raise Rs 3.7 lakh crore through bond sales in the first half of FY 2013, completing 65% of its targeted borrowing programme of Rs 5.1 lakh crore.