Mumbai: The Reserve Bank of India on Friday said it would inject Rs 40,000 crore into the market by purchasing government securities in November 2018. Also Read - Is RBI Planning to Scrap Old Notes of Rs 100, 10 And 5? Check Government's Statement

The decision comes amid concerns of a liquidity crisis in the economy after the financial services company IL&FS reported defaults in September. Also Read - India Exim Bank Recruitment 2020: Latest Notification for Management Trainee OUT; Application To Begin on Dec 19

“Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct the purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 400 billion in the month of November 2018,” RBI said in a statement. Also Read - Bank Holidays in December 2020: Private And Public Sector Banks to Remain Closed on These Days | Check State-Wise Full List

The central bank said the auction dates and the government securities to be purchased in the respective auctions would be communicated in due course.

“The OMO amount is indicative and RBI retains the flexibility to change it, depending on the evolving liquidity and market conditions,” it said.