INSUBCONTINENT EXCLUSIVE:
street about the safety of his savings at Yes Bank.
Since the last meeting of policy makers about six weeks ago, the Reserve Bank of India
(RBI) has cumulatively infused about Rs 2.5 lakh crore of liquidity in the banking system even as financial assets across the globe are
roiled by an unprecedented lockdown that seeks to restrain the virus from proliferating
On Friday, RBI decided to buy another Rs 30,000 crore of bonds through open market operations (OMO), saying the operations will be conducted
in two tranches.
Just three days earlier, it had announced first OMO purchase in the last two months for Rs 10,000 crore.
The first auction
current liquidity and financial conditions, the RBI has decided to conduct purchase of government securities under OMOs for an aggregate
global crisis triggered by covid-19," said Ritesh Bhusari, deputy general manager - treasury, South Indian Bank
"Instead of any rate action, a strict vigil on liquidity - be it the rupee or dollar - should serve the central bank's purpose
The gauge closed at 6.26 percent Friday compared with 6.41 percent a day earlier.
In its February bi-month policy, RBI had first announced
long-term repo operations (LTRO) to infuse rupee liquidity of Rs 1 lakh crore
In an unscheduled press conference earlier this week, the central bank again announced a similar measure - of the same quantum
Later, RBI conducted a dollar-swap auction for $2 billion where it injected dollar liquidity
Similar operations will be conducted next Monday.