RBI announces special OMO of Rs 10,000 cr on 6 January; may accept or reject offers without explanations

Mumbai: The Reserve Bank on Monday will carry a special simultaneous open market operation to buy and sell government bonds of Rs 10,000 crore each. “On a review of the current liquidity and market situation and an assessment of the evolving financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on 6 January 2020,” the RBI said in a release. [caption id=“attachment_4875601” align=“alignleft” width=“380”] File image of RBI. AFP[/caption] The RBI said it reserves the right to decide on the quantum of purchase/sale of individual securities; accept bids/offers for less than the aggregate amount as well as purchase/sell marginally higher than the aggregate amount due to rounding-off effects. It may also accept or reject any or all the bid/offers either wholly or partially without assigning any reasons. “The eligible participants should submit their bids/offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 AM and 12.00 noon on 6 January 2020,” RBI said.