1. You Are At:
  2. English News
  3. Business
  4. RBI announces OMO for sale, purchase of govt securities of Rs 10,000 crore

RBI announces OMO for sale, purchase of govt securities of Rs 10,000 crore

The Reserve Bank of India (RBI) on Monday announced that it will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said.

India TV Business Desk India TV Business Desk
New Delhi Updated on: September 07, 2020 15:58 IST
RBI
Image Source : FILE

RBI announces OMO for sale, purchase of govt securities of Rs 10,000 crore

The Reserve Bank of India (RBI) on Monday announced that it will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said.

The RBI on August 31 had announced that it would conduct special simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each as part of its measures to foster orderly market conditions.

"The first auction is scheduled for September 10, 2020," the RBI said in a statement.

It would be selling three securities totalling Rs 10,000 crore and also purchasing equal number of securities of the same amount.

The result of the auctions will be announced on the same day.

The second tranche of auction would be conducted on September 17.

Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.

(With PTI Inputs)

Latest Business News

Write a comment