RBI Announces Special Open Market Operations Of Rs 10000 Crore

RBI has announced Special Open Market Operations (OMO) of simultaneous purchase and sale of Government of India securities. Since the announcements made in the Statement on Developmental and Regulatory Policies of October 9, 2020 the Reserve Bank has expanded the scale of outright open market operations (OMOs) purchases of Government of India securities from Rs 10,000 crore to Rs 20,000 crore per auction. OMO purchase auctions in State Development Loans (SDLs) are also being conducted, as announced. The total amount of OMOs conducted in the second half of 2020-21 has been of the order of Rs 66,305 crore so far. The response has been positive in both primary and secondary market auctions. Accordingly, based on an ongoing assessment of liquidity conditions, the Reserve Bank will continue to conduct OMO purchase auctions in amounts of Rs 20,000 crore as well as OMOs in SDLs, along with other operations, to support market sentiment and assure adequate liquidity all along the yield curve. On a review of the current liquidity and financial conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) involving a simultaneous purchase and sale of government securities for an aggregate amount of Rs 10,000 crore each on November 12, 2020.

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