Points to Note
RBI Released official notification it will be administer a special Open Market Operations (OMO) from July 2nd 2020. The Open Market Operations was declare after reviewing the financial market conditions and evolving liquidity situations in banks of india. Through this special Open Market Operations service, the aim will be to pump up liquidity in the economic market of the nation.
About the Special OMO
Government of India will be purchased and sold simultaneously during the special Open Market Operations Securities worth Rs 10,000 crore this financial year .
The RBI will be selling short term government securities bonds worth Rs 10,000 crore that is maturing time in between 15 October 2020 to 29 April next year.
After That Government of India will be purchasing long term government securities bonds worth Rs 10,000 crore that will have a maturity time between May 2027 to December 2033.
When Government selling and purchase of securities bonds are control by the RBI are known as Operation Twist.
RBI to conduct Special Open Market Operations RBI to conduct Special Open Market Operations