The Reserve Bank of India (RBI) on April 29 announced special Open Market Operations (OMOs) under which it will do simultaneous purchase and sale of Government Securities (G-sec) on May 6 for Rs 10,000 crore each.
OMOs refer to the sale or purchase of bonds by the RBI to manage the liquidity in the system and bond yields.
"On a review of current liquidity and financial conditions, the Reserve Bank of India has decided to conduct simultaneous purchase and sale of Government securities under Open Market Operations (OMOs) for an aggregate amount of Rs10,000 crore each on May 06, 2021," the RBI said.
Early this month, the RBI announced Rs 1 lakh crore G-sec acquisition plan to give comfort to the bond markets. The plan was to enable a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions. “The endeavour will be to ensure congenial financial conditions for the recovery to gain traction. For Q1 of 2021-22, therefore, it has been decided to announce a G-SAP of Rs 1 lakh crore,” the RBI said.