 "Urban cooperative banks' business size may be capped at Rs 20,000 cr")
The Reserve Bank of India (RBI) will simultaneously buy and sell government bonds worth Rs 10,000 crore each on December 23, through Open Market Operations (OMOs), signalling its intent to lower yields on long-term bonds.
On a review of the current liquidity and market situation and an assessment of the evolving financial conditions, the RBI has decided to buy government bonds maturing in 2029 and sell four securities aggregating Rs 10,000 crore which will mature in 2020.
Madan Sabnavis, chief economist at CARE Ratings, said through such operations the RBI is trying to smoothen the yield curve and signalling correction
