With the heightening of Covid-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads. It is important to ensure that all market segments remain liquid and stable, and function normally.
Accordingly, on a review of the current liquidity and financial conditions, the Reserve Bank has decided to conduct open market operations on March 20, 2020 (Friday) in the form of purchase of an aggregate amount of ₹ 10,000 crores of the following Government securities through a multi-security auction using the multiple price method:
||8.20% GS 2022
||7.37% GS 2023
||7.32% GS 2024
||7.72% GS 2025
There is no notified amount against any of these securities within the aggregate ceiling of ₹ 10,000 crores set for the operation.
The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than or higher than the aggregate amount of ₹ 10,000 crores (including due to rounding off) and also to accept or reject any or all the offers either wholly or partially without assigning any reason.
Eligible participants should 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 March 20, 2020 (Friday). Physical offers would be accepted only in the event of system failure and in that event, they should be submitted to the Financial Markets Operations Department (email; Phone no: 022-22630982) in the prescribed form obtainable from the RBI’s website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before 12.00 noon.
The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on March 23, 2020 (Monday). Successful participants should ensure availability of requisite amount of securities in their SGL accounts by 12 noon on March 23, 2020 (Monday).
Press Release: 2019-2020/2082