RBI to conduct open market operations to infuse liquidity of Rs 100 billion

Reserve Bank of India
The Reserve Bank will conduct open market operations (OMO) on Thursday to purchase government bonds to infuse liquidity of Rs 100 billion.


“Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank of India (RBI) has decided to conduct purchase of government securities under Open Market Operations for an aggregate amount of Rs 100 billion on September 27, 2018 (Thursday),” the apex bank said in a release on Monday.


The purchase will happen through multi-security auction using the multiple price method, it said.


As part of the OMOs, the RBI will purchase government securities maturing in 2020 bearing interest rate of 7.80 per cent, 2022 (8.20 per cent), 2025 (7.72 per cent), 2027 (6.79 per cent) and 2031 (6.68 per cent).


The RBI said it has the right to decide on the quantum of purchase of individual securities and can also accept offers for less than Rs100 billion.

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