Business: RBI announces special OMO of purchase and sale of govt securities

The Reserve Bank of India (RBI) will again conduct simultaneous purchase and sale of government securities under the open market operation (OMO) for Rs 20,000 crore in two tranches of Rs 10,000 crore each.

Mumbai (Maharashtra): The Reserve Bank of India (RBI) will again conduct simultaneous purchase and sale of government securities under the open market operation (OMO) for Rs 20,000 crore in two tranches of Rs 10,000 crore each.
The auctions will be conducted on August 27 and September 3, the central bank said in a statement on Tuesday.
With the heightening of COVID-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.

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The RBI has been constantly reviewing current and evolving liquidity and market conditions. Eligible participants should submit their bids and offers in electronic format on the RBI core banking solution (E-Kuber) system between 10 and 11 am.

The result of auctions will be announced on the same day and successful participants should ensure availability of funds and securities in their current account or SGL account by 12 noon on August 28. (ANI)