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Last Updated : Sep 14, 2018 10:01 PM IST | Source: PTI

RBI to purchase govt securities worth Rs 10, 000 cr next week

The result of the auction will be announced on the same day and payment to successful participants will be on Friday

Q3. In 2013, it formally entered banking industry after RBI guidelines for the issuance of new banking licenses were released. In August 2015, the Reserve Bank of India granted it in-principle approval. It plans to open 1,000 ATMs by March 2016 and bring 25,000 of its outlets under core banking system in India. Which bank?
Q3. In 2013, it formally entered banking industry after RBI guidelines for the issuance of new banking licenses were released. In August 2015, the Reserve Bank of India granted it in-principle approval. It plans to open 1,000 ATMs by March 2016 and bring 25,000 of its outlets under core banking system in India. Which bank?

The Reserve Bank of India (RBI), on Friday, announced it will purchase government securities (G-secs) worth Rs 10, 000 crore on 19 September, a move aimed at inducing liquidity in the system.

The purchase of the government securities will be done through Open Market Operations (OMO).

"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations for an aggregate amount of Rs 100 billion on 19 September, 2018 (Wednesday) through multi-security auction using the multiple price method," it said in a statement.

The RBI proposes to purchase G-secs having five different maturity dates.

It further said there is an overall aggregate ceiling of Rs 10, 000 crore for all the securities in the basket put together.

"There is no security-wise notified amount," the central bank said.

The eligible participants have been asked to submit their offers in electronic format on the RBI's Core Banking Solution (E-Kuber) system on 19 September.

The result of the auction will be announced on the same day and payment to successful participants will be on Friday.
First Published on Sep 14, 2018 09:00 pm
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