Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

RBI To Infuse Rs 12,500 Crore Through Open Market Operations On Feb. 28

The Reserve Bank of India said it will infuse Rs 12,500 crore into the system through open market operations.

The RBI said it has decided to conduct purchase of certain government securities under OMOs for an aggregate amount of Rs 12,500 crore on Feb. 28 through multi-security auction using the multiple price method.

The decision on OMO is based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, it added.

"There is an overall aggregate ceiling of Rs 12,500 crore for all the securities in the basket put together. There is no security-wise notified amount," RBI said.

It further said the eligible participants should submit their offers in electronic format on the RBI Core Banking Solution (E-Kuber) system before noon on Thursday.

The result of the auction will be announced on Thursday and payment to successful participants will be made during banking hours on the following day.

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