Fresherslive Current Affairs;

RBI to infuse Rs.15,000 crore into financial system through the purchase of government bonds

Last Updated: June 12, 2019

Free Current Affairs to Your Email
RBI to infuse Rs.15,000 crore into financial system through the purchase of government bonds

RBI to infuse Rs.15,000 crore into financial system through the purchase of government bonds

12 June 2019 Current Affairs: The Reserve Bank of India is to infuse Rs.15,000 crore into the financial system through bond purchases on June 13.

Why the infusion:
RBI made the decision after assessing of prevailing liquidity conditions and also of the durable liquidity needs that are going forward. 
RBI uses Open Market Operations (OMO) for injecting liquidity into the system through the purchase of government bonds (G-sec). Therefore, RBI is to conduct the purchase of  six G-sec under OMOs through multi-security auction using multiple price method.

What is G-Sec?
A government security (G-Sec) is a debt obligation of the Indian government to fund their fiscal deficit. The securities are tradable. G-sec is  issued either by the central or the state government. They are offered for short term as well as long term.

Multiple price-auction
In a multiple price-auction each successful bidder should pay the price stated bu the player himself. But, in case of uniform price auctions, all successful bidders should pay the cut-off price, that is, the same price at which the market clears the issue.

Open Market Operations: 
Open market operations (OMO) refers to the buying and selling of government securities by the central bank, RBI in case of India, in the open market in order to contract or expand the amount of money in the banking system. The purchase of the securities will inject money into the banking system and stimulate growth, while sales of securities do the opposite and contract the economy.
Fresherslive Current Affairs;

Daily Current Affairs 2019

Fresherslive Current Affairs;


Subscribe to Current Affairs

Enter your email to get daily Current Affairs
Current Affairs PDF

Current Affairs 2019 October

October 15
News Quiz
October 14
News Quiz
October 13
News Quiz
October 12
News Quiz

Current Affairs 2019 September

September 30
News Quiz
September 29
News Quiz
September 28
News Quiz
September 27
News Quiz

Current Affairs 2019 August

August 31
News Quiz
August 30
News Quiz
August 29
News Quiz
August 28
News Quiz