RBI advances the OMO Purchase auction scheduled for March 30, 2020 to March 26, 2020

On a review of current liquidity and financial conditions, the Reserve Bank has decided to advance the second tranche of purchase of Government securities under Open Market Operations (OMOs) for ₹ 15,000 crores to March 26, 2020 (originally scheduled to be conducted on March 30, 2020). The Reserve Bank had announced its intent to purchase Government securities under Open Market Operations (OMOs) for an aggregate amount of ₹ 30,000 crores in the month of March 2020 vide, press release dated March 20, 2020. The first tranche is scheduled to be conducted on March 24, 2020 and the second tranche is scheduled for March 30, 2020. There is no notified amount against any of these securities within the aggregate ceiling of ₹ 15,000 crores set for the operation. The four government bonds to be bought by the RBI in the auction include 8.08 percent-2022; 7.68 percent-2023; 7.27 percent-2026 and 7.17 percent-2028, the release said. These bonds will be purchased through a multi-security auction using the multiple price method.

The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than or higher than the aggregate amount of ₹ 15,000 crores (including due to rounding off) and also to accept or reject any or all the offers either wholly or partially without assigning any reason.

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