Mumbai: The Reserve Bank of India will buy government bonds worth Rs 15,000 crore through open market operations (OMO) this week to infuse liquidity into the markets.
Based on the current assessment of prevailing and evolving liquidity conditions, the central bank has decided to conduct purchase of government securities under open market operations for an aggregate amount of Rs 15,000 crore on May 25, an RBI statement said on Monday.
There is an overall aggregate ceiling of Rs 15,000 crore for all the securities in the basket put together.
Purchase of security would help in release similar amount of money in the market and ease the liquidity condition.
The RBI further said it can purchase a marginally higher amount than the aggregate amount due to rounding-off effects and other relevant factors.
The central bank can accept or reject any or all of the offers either wholly or partially without assigning any reason, it said.
The result of the auction will be announced on the same day and payment to successful participants will be made on May 26.
