RBI to conduct special OMOs of simultaneous purchase and sale of G-secs

MUMBAI: The Reserve Bank of India (RBI) said on Thursday it will conduct Open Market Operations (OMOs) involving a simultaneous purchase and sale of government securities for an aggregate amount of Rs 10,000 crore each on November 12, on a review of the current liquidity and financial conditions.

The details of such purchase and sale are as follows:

Since the announcements made in the statement on developmental and regulatory policies of October 9, the central bank has expanded the scale of outright OMO purchases of government securities from Rs 10,000 crore to Rs 20,000 crore per auction.


OMO purchase auctions in State Development Loans (SDLs) are also being conducted, as announced, RBI said in a release.

The total amount of OMOs conducted in the second half of 2020-21 has been of the order of Rs 66,305 crore so far, and the response has been positive in both primary and secondary market auctions.

“Accordingly, based on an ongoing assessment of liquidity conditions, the Reserve Bank will continue to conduct OMO purchase auctions in amounts of Rs 20,000 crore as well as OMOs in SDLs, along with other operations, to support market sentiment and assure adequate liquidity all along the yield curve,” RBI said in a release.