The Reserve Bank India has announced that it will purchase government securities worth $120 billion under Open Market Operations.
The purchases will be done on on October 17 (Wednesday) through multi-security auction using the multiple price method, the RBI said in a release.
The RBI said that its decision was based on an “assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward”.
“There is an overall aggregate ceiling of ₹120 billion for all the securities in the basket put together. There is no security-wise notified amount,” the RBI said.
The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on October 17. “Only in the event of system failure, physical offers will be accepted,” it said. The result of the auction would be announced on the same day.
And, payment to successful participants would be made during banking hours on October 19. Successful participants should ensure availability of requisite amount of securities in their SGL account by 12 noon on October 19, the RBI said