The Reserve Bank of India (RBI) announced purchase of government securities through open market operations (OMO) on Friday, 20 March 2020, to the tune of Rs 10,000 crore.
"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. It is important to ensure that all market segments remain liquid and stable, and function normally," the RBI said in a release.Accordingly, on a review of the current liquidity and financial conditions, the Reserve Bank of India (RBI) has decided to conduct open market operations on 20 March 2020, in the form of purchase of an aggregate amount of Rs 10,000 crore of the government securities through a multi-security auction using the multiple price method.
RBI said it 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 Rs 10,000 crore (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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