Mumbai, March 18 (IANS) To pump up liquidity, the Reserve Bank of India will conduct a one-day ‘Open Market Operations’ on March 25 to simultaneous purchase and sell government securities.
The OMO session will see simultaneous purchase and sale of government securities worth Rs 10,000 crore.
Under this OMO, the RBI will sell short-term securities worth Rs 10,000 crore maturing in the current band next year and purchase long-term securities of an equal amount maturing between 2025 and 2035.
The move is expected to improve liquidity.
“On a review of current liquidity and financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of Government securities under OMO for an aggregate amount of Rs 10,000 crore each on March 25, 2021,” the RBI said in a statement.
“The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.”