RBI announces OMO purchase for government dated securities

By: | Published: September 15, 2018 3:53 AM

The Reserve Bank of India (RBI) on Friday announced open market operations (OMO) purchase of Government of India Dated securities based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward.

Reserve Bank of India, open market operations, Reserve Bank of India Core Banking Solution, Subsidiary General Ledger. The aggregate amount under OMO stood at Rs 10,000 crore and is scheduled on September 19 through multi-security auction using the multiple price method.

The Reserve Bank of India (RBI) on Friday announced open market operations (OMO) purchase of Government of India Dated securities based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward. The aggregate amount under OMO stood at Rs 10,000 crore and is scheduled on September 19 through multi-security auction using the multiple price method.

The different classes of security include – 8.12% GS 2020, 6.84% GS 2022, 6.79% GS 2027, 8.97% GS 2030 and 8.30% GS 2042. There is an overall aggregate ceiling of Rs 10,000 crore for all the securities in the basket put together, the central bank clarified. There is no security-wise notified amount. RBI reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than the aggregate amount of Rs 10,000 crore, purchase marginally higher than the aggregate amount due to rounding-off effects. And lastly, accept or reject any or all the offers either wholly or partially without assigning any reason.

The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 am and 12.00 noon on September 19. The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on September 21. Successful participants should ensure availability of requisite amount of securities in their Subsidiary General Ledger (SGL) account by 12 noon on September 21.

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