On Thursday the RBI announced that “it will conduct simultaneous purchase and sale of government securities under Open Market Operation (OMO) for an aggregate amount of ₹ 10,000 crore each on October 1.”
The RBI said in a statement that “on a review of the current liquidity and financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under open market operation (OMO) for an aggregate amount of ₹ 10,000 crore each on October 1, 2020.”
Further the RBI also said that “it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.”
On 1st October, the RBI would purchase three securities totaling worth ₹ 10,000 crore and selling two securities of the same amount. And the result of the auctions will be announced on the same day.
In also addition the RBI also said that “it reserves the right to decide on the quantum of purchase and sale of individual securities.”