RBI to purchase government securities under OMOs for aggregate amount of Rs 10,000 crore

Reserve Bank of India (RBI) has said that it will purchase government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore on September 24, 2020.

The securities will be purchased through a multi-security auction using the multiple price method. RBI said that the result of the auction will be announced on the same day and successful participants should ensure the availability of the requisite amount of securities in their SGL account by noon on September 25, 2020.

RBI reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher than the aggregate amount due to rounding-off and accept or reject any or all the bids either wholly or partially without assigning any reasons.

Earlier this month, RBI had on September 7 announced a special round of simultaneous sale and purchase of government securities (G-Secs) for Rs 10,000 crore each on September 10.