Mumbai, Jan 19 (IANS) In a bid to infuse liquidity into markets, the Reserve Bank of India (RBI) will purchase government securities worth a total Rs.10,000 crore on Wednesday.
"Based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct purchase of government securities under Open Market Operations (OMO) for an aggregate amount of Rs.100 billion on January 20, 2016, through multi-security auction using the multiple price method," the RBI said in a release here.
"There is an overall aggregate ceiling of Rs.100 billion for all the securities in the basket put together," the statement said.
The RBI will purchase government securities maturing in 2019 (interest rate of 7.28 percent), 2023 (8.83 percent), 2025 (7.72 percent) and 2030 (7.88 percent), it added.
The central bank also said it may accept less than the aggregate amount of Rs.10,000 crore, or may purchase marginally higher than the aggregate amount owing to rounding off effects and other relevant factors.
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