RBI Announces OMO Purchase of Government Securities

As indicated in the Mid-Quarter Monetary Policy Review of December 2010 released today, the Reserve Bank shall conduct Open Market Operation (OMO) auctions for purchase of government securities for an aggregate amount of ` 48,000 crore in the next one month. The OMO purchase auctions of ` 12,000 crore each will be conducted every week for the next four weeks; the first such auction will be conducted during the week ending December 24, 2010. Operational details for conducting the OMO auctions will be issued separately.

The OMO amounts are indicative and the Reserve Bank will have the flexibility in the scheme including the frequency, timing and the amount of OMO as may be necessary depending on the evolving liquidity and market conditions.

R.R.Sinha
Deputy General Manager

Press Release : 2010-2011/845