China's central bank on Monday added liquidity to the banking system through operations of medium-term lending facility (MLF) and reverse repos and kept the interest rate unchanged for a second month.

The People's Bank of China (PBOC) injected 500 billion yuan (about $70.33 billion) into the market through the one-year MLF with an interest rate of 2.75 percent, the same rate as the previous operation.

With 500 billion yuan MLF maturing on Monday, PBOC's operation resulted in no injection or withdrawal of medium-term liquidity on a net basis from the banking system.

The central bank also conducted seven-day reverse repos worth 2 billion yuan at an interest rate of two percent.

The purpose of Monday's operation was to "keep the liquidity in the banking system reasonably amble" and to "fully meet the needs of financial institutions", the central bank said in a statement.

The MLF tool helps commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, agreeing to sell them back in the future.

(With input from Xinhua)