Reserve Bank today said it will conduct open market operations for purchase of government securities worth Rs 15,000 crore on Thursday.
"Based on the current assessment of prevailing and evolving liquidity conditions, Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations for an aggregate amount of Rs 150 billion on April 28," RBI said in a notification.
As part of OMOs, RBI will purchase government securities maturing in 2020 (bearing interest rate of 8.27 per cent), 2022 (8.08 per cent), 2024 (8.40 per cent), 2027 (8.28 per cent), 2030 (9.20 per cent) and 2033 (8.24 per cent).
There is an overall aggregate ceiling of Rs 150 billion for all the securities in the basket put together, RBI said.
The auction, it added, would be held through the multi-security auction using the multiple price method.
OMOs are the market operations conducted by RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
If there is excess liquidity, RBI resorts to sale of securities and sucks out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI buys securities from the market, thereby releasing liquidity into the market.
