MUMBAI: The Reserve Bank on Friday decided to conduct Open Market Operation (OMO) purchases of government securities of Rs 1 lakh crore this month in a bid to maintain sufficient liquidity in the system.

Besides, the central bank will do a 3-year USD/INR buy-sell swap of USD 5 billion this month to inject durable liquidity.

These measures would help mitigate the liquidity crunch in view of the outgo from the banking system towards the third instalment advance tax payments due on December 15.

"... In view of the evolving liquidity conditions and the outlook, the Reserve Bank has decided to conduct OMO purchases of government securities of Rs 1,00,000 crore and a 3-year USD/INR Buy Sell swap of USD 5 billion this month to inject durable liquidity into the system," RBI Governor Sanjay Mal

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