Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the RBI has decided to conduct open market operations (OMOs) by purchasing the following government securities for an aggregate amount of R12,000 crore on June 12, 2012, it said in a statement.
As part of the OMOs, the RBI will purchase government securities maturing in 2020 (bearing interest rate of 8.19%), 2021 (8.79%), 2022 (8.08%) and 2024 (7.35%). The auction, it added, would be held through the multi-security auction using the multiple price method.
The RBI on May 25 had pumped in R11,194.25 crore in the system through the OMOs as against the notified amount of R12,000 crore. The RBI has been using the OMO tool, under which it purchases government securities from banks and other institutions to improve the liquidity situation.