Today RBI has announced big decisions for the banking sector with the cut in Repo Rates. Reserve Bank of India (RBI) has announced Open Market Operation (OMO) purchase of Rs 1 lakh crore, which will inject durable liquidity in the market. Along with this, RBI will also do a 3-year USD-INR Buy-Sell Swap of $5 billion so that permanent liquidity is maintained in the banking system. RBI Governor Sanjay Malhotra said that whatever liquidity the system requires, RBI will provide it. In the month of December, due to tax payment, cash goes out of the banking system, in such a situation, RBI’s OMO purchase will provide relief to the banks.
