RBI infuses Rs 10,000 crore through OMO

The Reserve Bank of India on Thursday decided to infuse Rs 10,000 crore via open market operations (OMOs) to ease tight liquidity by purchasing four government securities on March 30, 2012, through a multi-security auction using the multiple price method and also said that there is no security-wise transaction.

The decision came after considering a stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions.

RBI reserves the right to:

• Decide on the quantum of purchase of individual securities.
• Accept less than the aggregate amount of 10,000 crore.
• Purchase marginally higher than the aggregate amount due to rounding effects.
• Accept or reject any or all of the offers either wholly or partially if deemed fit without assigning reason.

The auction will held on Friday and result will announced on the same day, where as payments will made on April 3, 2012.

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