Mumbai: The Reserve Bank of India (RBI) has said that it will conduct open market operations (OMOs) on Monday to sell government securities worth Rs 10,000 crore.
"The Reserve Bank has decided to conduct sale of Government of India dated securities (G-Secs) under Open Market Operations (OMOs) for an aggregate amount of Rs 10,000 crore on October 13, 2014 (Monday)," it said in a release on Wednesday.
As part of the OMOs, the RBI will sell government securities maturing in 2017 (bearing interest rate of 8.07 percent), 2021 (8.79 per cent), 2026 (8.33 per cent) and 2027 (8.28 per cent).
The auction, it added, would be held through the multi-security auction using the multiple price method.
OMOs are the market operations conducted by the RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
If there is excess liquidity, RBI resorts to sale of securities and sucks out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI buys securities from the market, thereby releasing liquidity into the market.
Latest Business News
