This, along with its planned Rs 50,000-crore infusion through a term repo auction, will infuse about Rs 65,000 crore into the system in aggregate.
In effect, this will leave about netRs 35,000 crore funds in the system given the Rs 30,000-crore term repo maturity, market players said. This is expected to take care of the advance tax outgo, they added.
Recently, short-term rates had spiked with treasury bill yields going above the 9.10% level and CD rates shooting to double digits.
The RBI decision to infuse funds into the system will help bring down short-term rates, bond dealers said. According to the RBI release, it will buy back a host of G-secs maturing in fiscal 2015.