In order to pump up liquidity, the Reserve Bank of India (RBI) is going to conduct a one-day ‘Open Market Operations’ (OMO) on May 6 to simultaneous purchase and sell government securities. The OMO session will see simultaneous purchase and sale of government securities worth Rs 10,000 crore.
Under this OMO, the RBI will sell short-term securities worth Rs 10,000 crore maturing in the current band next year and purchase long-term securities of an equal amount maturing between 2026 and 2030.
The RBI said ‘on a review of current liquidity and financial conditions, it has been decided to conduct simultaneous purchase and sale of Government securities under OMO for an aggregate amount of Rs 10,000 crore each on May 6, 2021’.
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