The Reserve Bank of India said on Tuesday it will infuse Rs 15,000 crore into the financial system through bond purchases on Thursday.
"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of (six) Government securities under OMOs for an aggregate amount of Rs 150 billion on June 13, 2019 (Thursday) through multi-security auction using the multiple price method," the central bank said in a statement.
It further said there is an overall aggregate ceiling of Rs 15,000 crore for all the securities in the basket put together and there is no security-wise notified amount.
The participants have to submit their offers in electronic format on the Reserve Bank of India 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.
The RBI uses open market operations (OMO) for injecting liquidity into the system through the purchase of government bonds (G-sec).