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Posted on Dec 19, 07:56PM | UNI
The Reserve Bank of India (RBI) has said that it will infuse Rs 8,000 crore into the system by purchasing government securities as part of a liquidity injection measure.
"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMO) by purchasing government securities for an aggregate amount of Rs 8,000 crore on December 21, 2012 through multi-security auction," a release issued by the RBI said.
It has decided to inject required liquidity through OMO operation.
The RBI will auction three government securities with maturity in 2018, 2020 and 2026.
There has been some tightening on the liquidity front due to advance tax outgo, it added.