RBI buys bonds worth ₹40,000 cr in week to feb 21

ET BureauLast Updated: Mar 01, 2025, 10:24:00 AM IST

Synopsis

The Reserve Bank of India bought bonds worth ₹40,000 crore through open market operations to increase liquidity in the banking system. This brings their total bond purchases in February to ₹80,000 crore. Market participants anticipate further liquidity injections through similar operations or repo auctions. RBI had also made significant bond purchases in January.

The Reserve Bank of India purchased bonds worth ₹40,000 crore in screen based open market operations (OMO) purchases to infuse liquidity into the banking system in the week ended February 21.

This takes the cumulative bond purchases via screen to ₹80,000 crore in February, over and above the bonds purchased in auctions on February 13 and February 20 for ₹40,000 crore each. The RBI had done ₹59,000 crore of screen based OMO purchases in January as well.

Market participants expect more such liquidity infusion operations by the RBI via OMOs, variable rate repo auctions or foreign exchange swaps to address the deep deficit in system liquidity, traders said.

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