Mumbai: Reserve Bank of India (RBI) said that it had bought $4.4 billion of oil bonds from state-run refiners to help finance the companies’ oil purchases in the global markets.
The direct operations with oil companies started on 5 June and ended on 8 August.
In May, the bank has said that it was planning to provide dollars to refiners in open market operations in exchange for the oil bonds to provide liquidity to refiners, as banks had shied away from buying the bonds.
Oil bonds are given to the refiners by the government to compensate them for selling fuel at state—set prices which are much below global benchmarks.
A government report earlier this month said that the oil bond issuance in 2008-09 could equal to a little more than 2% of GDP.