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RBI to conduct open market operations worth Rs 20,000 crores

The Reserve Bank of India had on Tuesday announced that it will conduct open market operations (OMO) of government securities worth R 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 Open Market Operation (OMO) for an aggregate amount of Rs 20,000 crores in two tranches of Rs 10,000 crores each. The auctions would be conducted on August 27, 2020, and September 03, 2020,” RBI said.

For the OMO to be held on August 27, the RBI will be buying longer-dated government securities that would mature between 2024 and 2032 while it will be selling securities that would mature between October and November this year.

The Reserve Bank 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 securities for the second tranche auction on September 03, 2020, will be announced separately, the RBI said

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