RBI Injects Rs 50,000 Crore Liquidity via OMO Purchase

• The Reserve Bank of India (RBI) injected Rs 50,000 crore into the banking system on January 5.
• The injection was executed through Open Market Operation (OMO) Purchase of government securities.
• RBI purchased various GS bonds, including 7.10% GS 2029 and 7.40% GS 2035, but rejected bids for 8.30% GS 2040.
• This is part of a larger plan announced on December 23 to inject Rs 2 lakh crore durable liquidity through OMO purchases in four tranches.
• The banking system currently holds a surplus of Rs 49,702.30 crore as of January 4.

Why It Matters: RBI boosts banking system liquidity with Rs 50,000 crore OMO purchase, part of a larger plan.