RBI to inject Rs 50,000 cr via 2nd OMO purchase Dec 18

• RBI will conduct the second tranche of Open Market Operation (OMO) purchases of government securities worth Rs 50,000 crore on December 18.
• The auction for these purchases will take place on December 18 between 9:30 AM and 10:30 AM on the RBI’s E-Kuber system.
• The OMO purchase aims to inject durable liquidity into the banking system and help reduce bond yields.
• This follows a first tranche of OMO purchases on December 11, which also injected Rs 50,000 crore into the banking system.
• The purchases are intended to ease liquidity stress in the domestic banking system, strained by RBI's intervention to defend the Indian rupee.

Why It Matters: RBI's OMO purchase injects liquidity, easing banking system stress and lowering bond yields.