RBI Announces OMO Purchase of Government Securities for `12,000 crore on December 29, 2011

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the following government securities for an aggregate amount of `12,000 crore on December 29, 2011 through multi-security auction using the multiple price method:

There is an overall aggregate ceiling of `12,000 crore for all the securities in the basket put together. There is no security-wise notified amount.

RBI reserves the right to:

• Decide on the quantum of purchase of individual securities.
• Accept less than the aggregate amount of ` 12,000 crore.
• Purchase marginally higher than the aggregate amount due to rounding effects.
• Accept or reject any or all of the offers either wholly or partially if deemed fit without assigning reason.

The result of the auction will be announced on the same day and payment to successful offerers will be made during banking hours on December 30, 2011 (Friday). Successful offerers may note to make available the requisite amount of securities in their SGL account in the forenoon on December 30, 2011.

Ajit Prasad Assistant General Manager

Press Release : 2011-2012/1016