Reserve Bank of India Deputy Governor HR Khan has said that the RBI is looking at conducting open market operations (OMO) after assessing the government's cash balance, RBI will assess the liquidity situation and then see what the government balance is, whether it is short term or long term. The government balance is quite substantial, he added.
Some bankers expect Reserve Bank of India either to cut cash reserve ratio (CRR) in the third-quarter monetary-policy review on January 29 or conduct open market operations (OMO) to overcome liquidity crunch in the banking system. It is learnt that slow growth in deposit rate, back-to-back auction of government bonds have strained liquidity in the banking system. According to reports, main