Corona effect: RBI to inject ₹10,000 cr liquidity
In order to safeguard the country’s financial health at a time when India is engulfed in coronavirus outbreak, the Reserve Bank of India will inject liquidity of ₹10,000 crore through open market operations on Friday. It will purchase an aggregate amount of ₹10,000 crore of government securities through a multi-security auction using the multiple price method – having coupon rate of 8.20% (maturity February 15, 2022); 7.37% (April 16, 2023); 7.32% (January 28, 2024) and 7.72% (May 25, 2025).
“With the heightening of COVID-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.
“It is important to ensure that all market segments remain liquid and stable, and function normally,” the central bank said in a release on Wednesday.
In addition, RBI Governor Shaktikanta Das announced another round of US$ 2 billion dollar-rupee swap on March 23, and in another measure he said the RBI will continue to conduct the long-term repo operations (LTROs) of up to ₹1 lakh crore as and when the market needs it.