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Investing.com -- The Reserve Bank of India (NSE:BOI) (RBI) announced on Monday that it will double the volume of security purchases under its upcoming open market operation on February 13. The move aims to manage the liquidity deficit in India’s banking system.
RBI plans to buy government securities worth 400 billion rupees ($4.57 billion), a significant increase from the previously announced 200 billion rupees. This information was disclosed in a recent official release.
The banking system in India has been experiencing a liquidity deficit for eight consecutive weeks, as of the week ending on February 7. The current deficit stands at a substantial 1.33 trillion rupees. The central bank’s decision to increase its security purchases is a direct response to this ongoing issue.
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