NE BUSINESS BUREAU
MUMBAI, JUNE 29
The Reserve Bank of India (RBI) on Monday said it will buy and sell government securities worth Rs 10,000 crore each later this week in the wake of the current liquidity and market conditions.
The simultaneous sale and purchase will be done under open market operations (OMO) on July 2 (Thursday).
The last such OMO was done in April.
“On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under open market operations (OMO) for Rs 10,000 crore each on July 2, 2020,” the central bank said in a statement.
According to the statement, the RBI has offered to purchase dated securities totalling Rs 10,000 core. The securities are maturing between May 2027 and December 2033.
It has also offered to sell four dated securities of Rs 10,000 crore. These securities mature between October 2020 and April 2021.
The central bank further said it reserves the right to decide on the quantum of purchase/sale of individual securities and purchase/sell marginally higher/lower than the aggregate amount due to rounding-off.
Eligible participants should submit their bids/offers in electronic format on the RBI Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on July 2, 2020, it added.
The result of the auctions will be announced on the same day.
