The Reserve Bank of India on Friday infused Rs 9,679 crore into the banking system by buying four government securities from banks through open market operations (OMOs).
The central bank had originally proposed to infuse liquidity aggregating Rs 10,000 crore by buying the securities.
“To the extent there is liquidity crunch in the system, the RBI will keep doing OMOs,” said H. R. Khan, Deputy Governor, RBI, in a post-Budget briefing to the media.
As part of the OMO programme, the RBI purchased government securities maturing in 2014 (carrying an interest rate of 7.32 per cent), 2016 (7.59 per cent), 2022 (8.15 per cent) and 2025 (8.20 per cent).
Market experts expect the RBI to conduct two more OMOs this month.
“We can expect OMOs to the extent of Rs 16,000 crore this month,” said a treasury official of a public sector bank.