AMN / NEW DELHI
On a review of the current liquidity and financial conditions, the Reserve Bank of India (RBI) today said that it has decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs. 20,000 crores on 29th of this month.
OMOs in general sense refer to the sale or purchase of government securities by the RBI to commercial banks with a view to adjust liquidity conditions in the economy.
The State Development Loans (SDLs) are defined as securities issued by the states to manage their own finances.
In a press release issued today, the central bank said that SDLs will be bought through a multi-security auction.
The RBI said that the result of the auctions will be announced on the same day and successful participants should ensure availability of securities in their Subsidiary General Ledger (SGL) account by 12 noon on November 2, 2020.