Reserve Bank pumps funds to provide liquidity

• The Reserve Bank of India (RBI) said that it would conduct open market operation (OMO) auctions for purchase of government securities for an aggregate amount of Rs.48,000 crore in the next one month to ensure liquidity in the system.
• The RBI has also reduced the statutory liquidity ratio (SLR) of scheduled commercial banks (SCBs) from 25 per cent to 24 per cent with effect from December 18.
• However, the RBI has retained the short-term indicative rates, repo rate at 6.25 per cent and the reverse repo rate at 5.25 per cent. It has also retained the cash reserve ratio (CRR) at 6 per cent.