RBI announces special OMO of govt securities of Rs 20,000 crore
The Reserve Bank of India (RBI) on Tuesday announced that it will conduct simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each.
The auctions will be conducted on August 27, 2020, and September 03, 2020.
On August 27, the RBI would be selling four securities totalling Rs 10,000 crore and will be purchasing four securities of the same amount, the central bank said.
"The securities for the second tranche auction on September 03, 2020 will be announced separately," RBI added.
The Reserve Bank further said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure the orderly functioning of financial markets.
The simultaneous purchase and sale of government securities programme involves purchasing government securities of longer maturities and selling equal amount of securities of shorter maturities.
(Inputs from PTI)
First Published: Aug 25, 2020 12:01 PM IST
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