"Based on an assessment of the durable liquidity needs going forward, RBI has decided to conduct purchase of government securities under Open Market Operations (OMOs) for an aggregate amount of Rs 400 billion in December 2018," the RBI said in a release.

This is in addition to the purchase of Rs 40, 000 crore government securities (G-Secs) under OMO in November, of which the last tranche of Rs 10, 000 crore will be purchased by the central bank on November 29.

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase... (G-Secs) for an aggregate amount of Rs 100 billion on November 29, 2018," it said in another release.

The central bank said the auction dates and the government securities to be purchased in the respective auctions would be communicated in due course and that it retains the flexibility to change it depending on the evolving liquidity and market conditions.

The financial sector has been facing liquidity crunch for more than two months since the Infrastructure Leasing and Financial Services Ltd (IL&FS) defaulted in its payment obligations triggering reluctance among lenders to lend to the NBFC sector.