The Reserve Bank of India (RBI) will conduct simultaneous purchase and sale of government securities under open market operations (OMOs) for Rs 10,000 crore each on January 7.
The decision was taken after a review of current liquidity and financial conditions, the RBI said in a statement.
Eligible participants should submit their bids in electronic format on RBI's core banking solution (E-Kuber) system between 10 and 11 am on January 7.
The result will be announced on the same day and successful participants should ensure availability of the requisite amount of securities in their current account or subsidiary general ledger (SGL) account by noon on January 8.
With the heightening of Covid-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.
The central bank has been constantly reviewing current and evolving liquidity and market conditions.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.