GUWAHATI, India, Feb 7 (Reuters) - The Reserve Bank of India will buy bonds through open market operations if necessary, RBI Deputy Governor H.R. Khan said on Thursday.
The RBI last month cut the banks' cash reserve ratio by 25 basis points, which will release 180 billion rupees into the banking system from the two-week cycle starting on Feb. 9.
Liquidity in the banking system has been tight on account of lower government spending. (Reporting by Shamik Paul; Editing by Rafael Nam)