After review of present liquidity and financial situation, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of government securities via Open Market Operation (OMO) on January 14. Under this, the RBI will buy three government securities worth Rs 10,000 crore of different maturity dates. It'll sell two securities worth Rs 10,000 crore using the multiple price auction method.
The Reserve Bank has the right to decide on the quantum of purchase or sale of individual securities. It can accept bids for less than the aggregate amount. It can also purchase or sell marginally higher or lower due to rounding-off. The RBI also holds the right to accept or reject bids without assigning any reasons.
Eligible participants need to submit bids online on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on January 14. Physical bids will be accepted only in the case of a system failure. Such bids should be submitted to the RBI's Financial Markets Operations Department in the prescribed form obtainable from RBI website (www.rbi.org.in/Scripts/BS_ViewForms.aspx) before 11:00 am.
The result will be announced on the same day. Successful participants must ensure availability of funds in current or SGL account by 12 noon on January 15. Before this, the RBI had conducted simultaneous purchase and sale of government securities worth Rs 10,000 crore each under OMO on January 07.