The Reserve Bank of India to conduct open market operations or OMO of government securities worth ₹20,000 crore in two tranches, it announced on Tuesday.
“On a review of current and evolving liquidity and market conditions, RBI has decided to conduct simultaneous purchase and sale of govt securities under Open Market Operation (OMO) for an aggregate amount of Rs 20,000 cr in two tranches of Rs 10,000 cr each,” the central bank said in a statement.
The auctions will be conducted on August 27 and September 3 and the results will be announced on the same day.
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Eligible participants need to submit their bids and offers in electronic format on the RBI core banking solution (E-Kuber) system between 10 and 11 am.
Successful participants are required to ensure availability of funds and securities in their current account or SGL account by 12 noon on August 28.
{{/usCountry}}Successful participants are required to ensure availability of funds and securities in their current account or SGL account by 12 noon on August 28.
{{/usCountry}}With the heightening of Covid-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.
The RBI has been constantly reviewing current and evolving liquidity and market conditions.
(With agency inputs)