The Reserve Bank on Tuesday said that it 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 will be held on August 27 and September 3, the RBI said.
“Eligible participants should submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on August 27, 2020,” it added. The result of the auctions will be announced on the same day and successful participants should ensure availability of funds/securities in their Current account/SGL account, the release issued by the central bank said.
“The securities for the second tranche auction on September 03, 2020 will be announced separately,” it added.
The Reserve Bank further said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.
The central bank had previously conducted OMO in October worth Rs 10,000 crore to maintain liquidity.
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.