Mumbai, Sept. 11 -- The RBI on Friday announced Open Market Operation (OMO) sales of government securities of Rs 1 lakh crore in three tranches, with the first auction to be held on September 17, according to the notification.
The first tranche of Rs 50,000 crore will be held on September 17, and Rs 25,000 crore each on September 21 and September 28, RBI said.
"On a review of current and evolving liquidity conditions, the RBI has decided to conduct OMO sale auctions of G-secs for an aggregate amount of Rs 1,00,000 crore in three tranches," RBI said in a release.
During the first auction, the central bank will sell securities such as 7.59% GS 2029, 6.79% GS 2029, 7.61% GS 2030, 5.77% GS 2030, 6.68% GS 2031, and 8.28% GS 2032. The auction will take place between 9:30 AM and 10:30 AM on September 17, RBI said.
This comes as liquidity in the banking system is in a huge surplus due to FCNR (B) deposit inflows, and the RBI has been continuously conducting variable rate reverse repo (VRRR) auctions to absorb excess liquidity.
Currently, liquidity in the banking system is estimated to be in surplus of around Rs 10.43 lakh crore as on September 10, as per RBI data.
Published by HT Digital Content Services with permission from Millennium Post.