Synopsis: The Reserve Bank of India will purchase government bonds worth Rs 40,000 crore through Open Market Operations (OMO) on April 17. This move aims to address tightening liquidity and ensure financial market stability.
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In a strategic move to ease liquidity pressures in the financial system, the Reserve Bank of India (RBI) on Friday announced an Open Market Operation (OMO) bond purchase worth Rs 40,000 crore, scheduled for April 17, 2025.
The RBI stated that this initiative is part of its ongoing efforts to manage "evolving liquidity conditions" in the banking system. This operation follows a prior announcement made on April 1 regarding the purchase of Rs 80,000 crore worth of government securities in four equal tranches across the month.
According to the central bank, the April 17 auction will include multiple government securities with maturities ranging from 2028 to 2039, such as the 7.37% GS 2028, 7.32% GS 2030, 6.54% GS 2032, and 7.18% GS 2033, among others. However, the RBI has not fixed any security-specific amount and reserves the right to determine the quantum of each security during the auction process.
The auction will be conducted via the multiple price method through the RBI’s E-Kuber electronic platform, open from 9:30 AM to 10:30 AM. In case of a technical disruption, physical bids will be permitted. The results of the auction will be released on the same day.
Successful bidders must ensure that securities are available in their Subsidiary General Ledger (SGL) account by 12 noon on April 21, 2025.
This liquidity infusion signals RBI's readiness to act in response to market dynamics and reaffirms its commitment to maintaining macro-financial stability.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult a certified financial advisor before making investment decisions.
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