The Reserve Bank of India (RBI) announced to inject Rs 120 billion liquidity into the system on October 11. RBI will purchase government bonds with maturity ranging between 2020 to 2030 worth the amount to meet the festival season demand for funds.

''Based on an assessment of the durable liquidity needs going forward and the seasonal growth in currency in circulation observed in build-up to the festive season, RBI has decided to conduct purchase of Government securities under Open Market Operations (OMOs),'' said the central bank.

RBI will purchase of Government securities for an aggregate amount of Rs 360 billion in the month of October 2018. ''The auctions would be conducted during the 2nd, 3rd and 4th week of October,'' it added.