Money & Banking

RBI announces ₹10,000-cr OMO for sale, purchase of G-Secs

Our Bureau. Mumbai | Updated on September 07, 2020

The Reserve Bank of India (RBI) has announced that it will conduct special simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of ₹10,000 crore each on September 10.

The central bank will purchase three Government Securities (G-Secs) – the G-Sec maturing in 2025 carries a coupon rate of 7.72 per cent (or 7.72 per cent G-Sec 2025); 6.79 per cent G-Sec 2027; and 5.79 per cent G-Sec 2030 – aggregating ₹10,000 crore.

The Reserve Bank will simultaneously sell three 182 Day Treasury Bills maturing on October 22, October 28 and November 6 aggregating ₹10,000 crore.

In both the aforementioned transactions, there is no security-wise notified amount.

As per its ‘Measures to Foster Orderly Market Conditions’ announced on August 31, the RBI said it would conduct an additional special OMO involving the simultaneous purchase and sale of government securities for an aggregate amount of ₹20,000 crore in two tranches of ₹10,000 crore each. The auction on September 10 is the first tranche.

The RBI also said it remains committed to further such operations as warranted by market conditions.

Published on September 07, 2020

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