RBI to conduct simultaneous sale-purchase of government securities under OMO for Rs 15,000 crore each
On a review of current liquidity and financial conditions, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore each on March 4, 2021. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities.
Eligible participants can submit their bids in electronic format to the RBI on its core banking solution (E-Kuber) system between 10 am to 11 am on March 4. RBI said only in the event of system failure, physical bids would be accepted. The names of successful bidders will be announced on the same day.
RBI said it reserves the right to decide the quantum of purchase/sale of individual securities, accept bids for less than the aggregate amount, as well as to accept or reject any or all bids either wholly or partially without giving any reasons. The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.
