RBI to infuse Rs 65,000 crore liquidity into system

MUMBAI: To ensure adequate liquidity in the system at a time when the quarterly advance tax outgo is coinciding with a Rs 30,000-crore term repo maturity, the RBI on Thursday evening announced a buyback of government securities (G-secs) worth about Rs 15,000 crore.

This, along with its planned Rs 50,000-crore infusion through a term repo auction, will infuse about Rs 65,000 crore into the system in aggregate.

In effect, this will leave about net Rs 35,000 crore funds in the system given the Rs 30,000-crore term repo maturity, market players said. This is expected to take care of the advance tax outgo, they added.

Recently, short-term rates had spiked with treasury bill yields going above the 9.10% level and CD rates shooting to double digits.

The RBI decision to infuse funds into the system will help bring down short-term rates, bond dealers said. According to the RBI release, it will buy back a host of G-secs maturing in fiscal 2015.


- The Times of India on Mobile

Thanking you

Regards,

Rajesh Kumar Kathpalia ¤ SMC Global
17,Netaji Subhash Marg,Daryaganj,
New Delhi-110002 Mobile No 9891645052
Email Id: rajesh.ipo@smcindiaonline.com


--
You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group.
To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

Comments




I would like to request you to join our following services.
It is the smartest way to stay on top of latest Mutual fund, Bonds & IPO News .

 Product Updates on whatsapp


 Product Updates on Email 

                                                   
 Product Updates on Telegram



You will get daily news updates for FREE. 
I also request you to spread the world by referring us to the smartest people you know.  

To share it with your friends, 
just Copy below message it & paste in your group

Subscribe to Our WhatsApp, Email & Telegram Update Service ! https://bit.ly/3ryhxBM
     

Popular Posts

Fiscal deficit in H1 almost 83% of full-year target

Government of India 7.15% Floating Rate Savings Bonds : A better alternative to FDs ! - 100% risk free investment option