India's central bank doubles bond purchase to manage liquidity deficit

India's central bank on Monday said it will double the quantum of security purchases under its next tranche of open market operation on February 13 to manage the liquidity deficit in the country's banking system. The Reserve Bank of India (RBI) will purchase government securities worth 400 billion rupees ($4.57 billion), as against 200 billion rupees announced earlier, it said in a release. The banking system liquidity has stayed in deficit for eight consecutive weeks as of the week ended February 7, and the deficit currently stands at 1.33 trillion rupees.