RBI Announces OMO of Goverment Securities Worth Rs 20,000 Cr

Gross Domestic Product (GDP) Reserve Bank of India (RBI).

Today, the Reserve Bank of India (RBI) had revealed that it will conduct Open Market Operations (OMO) of government securities worth Rs 20,000 crore in two tranches. The new relocation by RBI acknowledged that there is need for more rate cut however, due to the rising inflation it is unlikely to implement.After examining current market condition and progressing liquidity, RBI has chosen to carry out simultaneous purchase and sale of federal government securities under OMO worth Rs 20,000 crore in two tranches of an aggregate quantity of Rs 10,000 crores each and, the auction is going to be conducted on 27 August, 2020 and 03 September, 2020 and the results are going to be announced on the exact same date.On 27 August, RBI would be buying longer maturity duration federal government securities between 2024 to 2032. RBI said that eligible individuals are needed to submit their quotes in an electronic format through its E-Kuber system, between 10:00 am and 11:00 am. It would be selling securities that are going to grow this year in the month of October and November.RBI expects the nations Real Gross Domestic Product (GDP) in both the very first half and all of FY21, to remain in a contractionary mode. It will also continue to keep an eye on market conditions and developing liquidity to take suitable procedures for making sure proper performance of monetary markets.