Liquidity push: RBI to buy back Rs 1.3L cr G-Secs

The Reserve Bank announced a ₹1.3 lakh crore government securities buyback to inject liquidity into the banking system. This unconventional move aims to address tight liquidity conditions ahead of the busy season. The buyback will be conducted in four tranches through May-June, targeting securities maturing in 2024-25. Analysts view this as RBI's balancing act between controlling inflation and supporting growth. The operation may ease pressure on short-term rates while absorbing excess government cash balances.