NEW DELHI: The Reserve Bank of India (RBI) on Tuesday announced special open market operations (OMO) of government securities worth Rs 20,000 crore in two tranches.
“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 OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each,” the central bank stated in a notification.
The auctions would be conducted on August 27 and September 3, it added.
“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 OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each,” the central bank stated in a notification.
The auctions would be conducted on August 27 and September 3, it added.
It must be noted that the RBI reserves the right to decide on the quantum of purchase/sale of individual securities; accept bids/offers for less than the aggregate amount; purchase/sell marginally higher/lower than the aggregate amount due to rounding-off; and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.
Eligible participants need to submit their bids in electronic format (e-format) on the RBI Core Banking Solution (e-Kuber) system between 10 am and 11 am on August 27, 2020. Physical bids would only be accepted in case of system failure.
The securities for the second tranche auction on September 3 will be announced separately, the RBI further mentioned.
