RBI Liquidity Boost: ₹40,000 Cr OMO and ₹1.5 Lakh Cr VRR
Why in the news
The central bank announced steps to keep banking liquidity in surplus ahead of GST outflows.
Key facts
| Tool | Size | Timing |
|---|---|---|
| OMO purchase | ₹40,000 crore | April 17 |
| VRR, 43 days | ₹1.5 lakh crore | April 17; ends May 30 |
| Extra OMOs | ₹20,000 crore each | April 22, 29 |
- Target: surplus around 1% of NDTL, equal to ₹2 lakh crore.
- GST outflows near the 20th of each month tighten liquidity.
- April’s daily surplus averaged ₹1.7 lakh crore, versus a ₹3 lakh crore deficit in January.
Policy angle
- Governor Sanjay Malhotra: sufficient liquidity speeds rate transmission; economists call the move pre-emptive.
Exam angle
- Terms: OMO, VRR, NDTL.