MUMBAI, May 15: The Reserve Bank (RBI) has announced that it will pump in Rs 12,000 crore in the market later this week by buying government securities to ease the liquidity situation.
Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions,the RBI has decided to conduct Open Market Operations (OMOs) by purchasing government securities for an aggregate amount of Rs 12,000 crore on May 18, 2012,’ it said in a statement.
As part of the OMOs, the RBI will purchase government securities
maturing in 2018 (bearing interest rate of 8.24 per cent), 2021 (8.79 per cent), 2022 (8.08 per cent) and 2027 (8.28 per cent).
The auction, it added, would be held through the multi-security auction using the multiple price method.
The RBI had last week pumped in Rs 9,757 crore in the system through the OMOs as against the notified amount of Rs 12,000 crore.
The central bank has been using the OMOs tool, under which it purchases government securities from banks and other institutions to improve the liquidity situation.
However, RBI said that it reserves the right to decide on the quantum of purchase of individual securities, accept less than the
aggregate amount of Rs 12,000 crore, Purchase marginally higher than the aggregate amount due to rounding effects, Accept or reject any or all of the offers either wholly or partially if deemed fit without assigning reasons.
(UNI)
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