The response to the open market purchase auction conducted on March 20, 2020 has been positive. Meanwhile, with the COVID-19 related dislocations, stress in certain financial market segments is still severe and financial conditions remain tight. The RBI’s endevour is to ensure that all markets segments function normally with adequate liquidity and turnover.
Accordingly, on a review of the current liquidity and financial conditions, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMOs) for an aggregate amount of ₹30,000 crores in two tranches of ₹15,000 crores each in the month of March 2020. The auctions would be conducted on March 24, 2020 and March 30, 2020.
The first OMO purchase auction will be conducted on March 24, 2020 for purchase of an aggregate amount of ₹15,000 crores of the following Government securities through a multi-security auction using the multiple price method:
||6.84% GS 2022
||7.72% GS 2025
||8.33% GS 2026
||7.26% GS 2029
There is no notified amount against any of these securities within the aggregate ceiling of ₹15,000 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 ₹15,000 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 24, 2020. 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 26, 2020. Successful participants should ensure availability of requisite amount of securities in their SGL accounts by 12 noon on March 26, 2020.
Chief General Manager
Press Release: 2019-2020/2093