The Reserve Bank of India (RBI) said that the total amount of Open Market Operations (OMOs) conducted in the second half of 2020-21, has been of the order of Rs66,305cr so far. RBI is set to launch purchase and sale of government securities under OMOs on November 12, 2020.
RBI said, "The Reserve Bank has expanded the scale of outright open market operations (OMOs) purchases of Government of India securities from Rs10,000cr to Rs20,000cr per auction. OMO purchase auctions in State Development Loans (SDLs) are also being conducted, as announced."
Further, RBI said, "The total amount of OMOs conducted in the second half of 2020-21 has been of the order of Rs66,305cr so far. The response has been positive in both primary and secondary market auctions."
Accordingly, RBI stated that based on an ongoing assessment of liquidity conditions, the Reserve Bank will continue to conduct OMO purchase auctions in amounts of Rs20,000 crore as well as OMOs in SDLs, along with other operations, to support market sentiment and assure adequate liquidity all along the yield curve.
On a review of the current liquidity and financial conditions, RBI will conduct OMOs involving a simultaneous purchase and sale of government securities for an aggregate amount of Rs10,000cr each on November 12, 2020.
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