RBI to conduct simultaneous purchase, sale of govt securities under OMOs for Rs 10,000 crore each

The Reserve Bank of India (RBI) has said that it will conduct simultaneous purchase and sale of government securities under open market operations (OMOs) for Rs 10,000 crore each on November 26, 2020. The RBI said the decision was taken after a evaluation of the current liquidity and financial circumstances.

RBI will buy three government securities of different maturity dates totalling to Rs 10,000 crore. Also, RBI will sell two securities totalling to the same amount using the multiple price auction method on November 26, 2020.

The RBI further said it reserves the right to select on the quantum of purchase/sale of individual securities. The result of the auctions will be broadcasted on the same day.

Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.