RBI to conduct Open Market Operation on Sept 19

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The apex bank is planning to conduct an open market operation on coming Wednesday to release liquidity into the system by purchasing government bonds worth ₹10,000 crore.

RBI quoted, “Based on an assessment of liquidity conditions and of durable liquidity needs, RBI has decided to conduct the purchase of government securities under Open Market Operations.”

Reportedly, the OMO (Open Market Operation) will be conducted via a multi-security auction and multiple price method. “There is an overall aggregate ceiling of 10,000 crore for all the securities in the basket put together. There is no security-wise notified amount,” the RBI quoted as per Business Line.

As per CARE Ratings, RBI had already bought securities worth 30,650 crore through open market operation in the current fiscal year. The coming OMO might just be an attempt to boost liquidity situation in FY18.


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