Reserve Bank said it would sell Rs 10,000 crore government bonds through Open Market Operation (OMO) to mop up liquidity from the system.
“On an assessment of current and evolving liquidity conditions, Reserve Bank has decided to conduct sale of government securities under Open Market Operations for an aggregate amount of Rs 10,000 crore on November 5 through multi-security auction using the multiple price method,” the central bank said in a statement.
There is an overall aggregate ceiling of Rs 10,000 crore for all the securities in the basket put together, it said.
The central bank would decide on the quantum of sales of individual securities, it said. RBI would have option to accept bids for less than the aggregate amount of Rs 10,000 crore. As part of the OMOs, the RBI will sale government securities maturing in 2017 (bearing interest rate of 8.07 per cent), 2021 (8.79 per cent), 2022 (8.08 per cent) and 2027 (8.28 per cent).
Source : Deccan Herald