RBI to buy Rs10,000 crore government bonds
21 Mar 2009
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The Reserve Bank of India (RBI) will purchase dated government securities for an aggregate amount of Rs10,000 crore under an auction-based open market operation on 25 March 2009.
The settlement would be on 26 March 2009. The other details of the auction, such as, individual securities, modalities, etc, would be announced at market close on 23 March 2009.
The RBI, through purchase of bonds through the OMO window, plans to add liquidity into the system, cut down the cost for government borrowing and ensure flow of money into the credit market.
This will also cut down the cost for government borrowing and ensure flow of money into the credit market.
