RBI injects Rs 50,000 crore liquidity via OMO purchase

• RBI injected Rs 50,000 crore liquidity into the banking system on December 11 via Open Market Operation (OMO) purchases of government securities.
• The central bank received bids worth Rs 1,11,615 crore but accepted only Rs 50,000 crore, providing durable liquidity.
• This OMO purchase is the first tranche of a planned Rs 1 lakh crore injection announced in the December monetary policy.
• OMO purchases help the banking system gain durable liquidity and reduce bond yields.
• The liquidity injection aims to ease strain in the domestic banking system, which was impacted by RBI's rupee defense.

Why It Matters: RBI's liquidity injection affects banking system and bond market stability.