RBI to Purchase Government of India Dated Securities under OMO

Reserve Bank of India Building

Based on the current assessment of current and evolving liquidity conditions, the Reserve Bank of India has decided to conduct purchase of Government securities under Open Market Operations for an aggregate amount of INR 150 billion on May 25, 2016 (Wednesday) through multi-security auction using the multiple price method:

There is an overall aggregate ceiling of INR 150 billion for all the securities in the basket put together. There is no security-wise notified amount.

RBI has the right to decide on the quantum of purchase of individual securities, accept less than the aggregate amount of INR 150 billion, purchase marginally higher than the aggregate amount due to rounding off effects and other relevant factors, accept or reject any or all of the offers either wholly or partially without assigning any reason.

The eligible participants have to 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 May 25, 2016 (Wednesday). Only in the case of system failure, physical offers would be accepted. Such physical offer should be submitted to Financial Markets Operations Department in the prescribed form obtainable from RBI website before 12.00 noon.

The result of the auction will be declared on the same day and payment to successful participants will be made during banking hours on May 26, 2016 (Thursday). Successful participants should ensure availability of required amount of securities in their SGL account by 12 noon on May 26, 2016 (Thursday).

Image courtesy: Wikimedia