Under the OMOs, RBI buys certain government securities from the market, which thereby provides liquidity to the system.
The size of this week's OMO buyback could be Rs 100 billion, the treasurer said.
"When RBI intervenes in the foreign exchange market, the rupee liquidity is being sucked out of the system. So to that extent, the RBI will pump in liquidity," said another banker.
The central bank has been intervening into the foreign exchange market to check rupee volatility, which touched a lifetime low of 72.11 against the US dollar in the intra-day trade Thursday. It closed at 71.73 Friday, after opening at 71.95.
Since April 13, the country's foreign exchange reserves have depleted by nearly $26 billion due to the RBI's intervention in the foreign exchange market.
The treasury head of a private sector bank said the OMOs will help cool off yield on 10-year benchmark government security, which is hovering above 8 per cent.
The yield on 10-year government bond rose on concerns that country's current account deficit (CAD) would widen as rupee is depreciating and on concerns inflation may go beyond the RBI's comfort zone.
According to Moody's, the country's CAD will widen to 2.5 per cent of the GDP in the current fiscal year due to higher oil prices that has been accentuated by rupee depreciation.
RBI has projected retail or consumer price based inflation (CPI) to be at 4.6 per cent in the second quarter of FY19, 4.8 per cent in the second half of FY19 and 5 per cent in the first quarter of FY20.
Bankers also expect the apex bank to raise repo rate by 25 basis points in the upcoming monetary policy review.