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RBI to conduct first OMO for state bonds worth Rs 10,000 cr on Oct 22

Size may be enhanced in the subsequent auctions depending on market response

open market operations | RBI | Liquidity

Abhijit Lele  |  Mumbai 

Reserve Bank of India, RBI
The size may be enhanced in the subsequent auctions, depending on market response, RBI said in the statement

(RBI) will conduct first (OMOs) to buy State Developments Loans (SDLs) aggregating Rs 10,000 crore through auction on October 22, 2020 to improve and pricing for these

The size may be enhanced in the subsequent auctions, depending on market response, said in the statement.

On October 9, had announced intent in the Statement on Developmental and Regulatory Policies OMOs to purchase state government

The central bank said it will buy maturing between January 2029 and March 2031. It is offering to purchase bonds issued by 15 states including Assam, Bihar, Gujarat, Jammu & Kashmir, Kerala, Madhya Pradesh and Maharashtra.

ALSO READ: OMO on state government bonds could be a game changer, say experts

At present, SDLs are eligible collateral for Adjustment Facility (LAF) along with T-bills, dated government securities and

On October 9, had said it would conduct OMOs in SDLs as a special case during the current financial year. The OMOs would be conducted for a basket of SDLs comprising securities issued by states.

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First Published: Fri, October 16 2020. 14:40 IST