RBI to inject Rs 10,000 crore through open market operations

On a review of current and evolving liquidity and market conditions, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on July 2.

The RBI said it will buy government securities including 6.79 per cent, 7.26 per cent, 6.68 per cent and 6.57 per cent maturing on May 15, 2027, January 14, 2029, September 17, 2031 and December 5, 2033.

On the other hand, it will sell securities that mature between October 2020 and April 2021. The RBI said that it reserves the right to decide on the quantum of purchase or sale of individual securities, accept bids or offers for less than the aggregate amount, purchase or sell marginally higher or lower than the aggregate amount due to rounding off and to accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.