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RBI to conduct purchase of government securities worth 120 billion rupees

The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on Nov 16

Tuesday November 13, 2018 10:22 PM, ummid.com News Network

RBI Auction

Mumbai: The Reserve Bank of India (RBI) Tuesday announced it will inject Rs 12,000 crore into the system through purchase of government securities on November 15.

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank of India (RBI) has decided to conduct purchase of the following Government securities under Open Market Operations for an aggregate amount of Rs. 120 billion on November 15, 2018 (Thursday) through multi-security auction using the multiple price method", the RBI said in a statement.

As part of the OMOs, the RBI will purchase government securities maturing in 2021 bearing interest rate of 8.79 per cent, 2022 (6.84 per cent), 2024 (8.40 per cent), 2027 (8.24 per cent) and 2033 (6.57 per cent).

"There is an overall aggregate ceiling of Rs. 120 billion for all the securities in the basket put together. There is no security-wise notified amount", the RBI said.

"The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on November 15, 2018 (Thursday)", the RBI statement signed by Shweta Mohile, Assistant Manager, said.

"Only in the event of system failure, physical offers would be accepted. Such physical offer should be submitted to Financial Markets Operations Department in the prescribed form obtainable from RBI website before 12.00 noon", the statement said.

The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on November 16, 2018 (Friday).

"Successful participants should ensure availability of requisite amount of securities in their SGL account by 12 noon on November 16, 2018 (Friday)", the RBI said.

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