conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 20,000 crore in two tranches, the second tranche of which (Rs 10,000 crore) will be held on Thursday.
“On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of Rs 20,000 crores in two tranches of Rs 10,000 crores each. The auctions would be conducted on August 27, 2020 and September 03, 2020,” the RBI had said.
The Reserve Bank said that it reserves the right to decide on the quantum of purchase/sale of individual securities; accept bids/offers for less than the aggregate amount; purchase/sell marginally higher/lower than the aggregate amount due to rounding-off; and accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.
Eligible participants were required to submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on August 27, 2020. RBI said, only in the event of system failure, physical bids/offers would be accepted. Such physical bid/offer should be submitted to Financial Markets Operations Department in the prescribed form obtainable from RBI website.