RBI to inject Rs.10,000 crore through OMO on 6th December

RBI to inject Rs.10,000 crore through OMO on 6th December

The Reserve Bank of India (RBI) said it will be injecting Rs.10,000 crore into the system through the purchase of government securities on December 6 to increase liquidity. RBI’s decision is based on an assessment of prevailing liquidity conditions. The purchase will be made through Open Market Operations (OMOs). The OMO operation will help ease tight liquidity situation triggered by a series of defaults by group companies of IL&FS.

The eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system. The result of the auction will be announced on the same day and payment to successful participants will be made on the following day.

E-Kuber:

♦ E-Kuber is the Core Banking Solution of RBI

♦ E-Kuber provides the provision of a single current account for each bank across the country, with decentralized access to this account from anywhere-anytime using portal based services in a safe manner

Core Banking Solutions (CBS):

♦ CBS refers to a centralized system established by a bank which allows its customers to conduct their business irrespective of the bank’s branch

♦ It thus removes the impediments of geo-specific transactions