RBI to conduct OMO of Rs 25,000 cr G-secs on Aug 26

RBI to conduct OMO of Rs 25,000 cr G-secs on Aug 26

Mumbai: The Reserve Bank of India (RBI) on Wednesday said it will conduct an open market purchase of government securities of Rs 25,000 crore on August 26, under the G-sec Acquisition Programme (G-SAP 2.0). Earlier this month, RBI Governor Shaktikanta Das had said the RBI’s secondary market G-sec Acquisition Programme (G-SAP) has been successful in anchoring yield expectations while eliciting keen response from market participants.

In his statement after the Monetary Policy Committee meeting, he had announced two more auctions of Rs 25,000 crore each under G-SAP 2.0. The first one was held on August 12.

In a statement on Wednesday, the central bank said it will purchase five government securities aggregating to Rs 25,000 crore through a multi-security auction using the multiple price method on August 26.

It also said the RBI reserves the right to decide on the quantum of purchase of individual securities and accept bids for less than the aggregate amount.

The result of the auctions will be announced on the same day.

About Author

Related posts