The Reserve Bank of India (RBI) on Tuesday announced that it will again conduct simultaneous purchase and sale of government securities under the open market operation (OMO) for Rs 20,000 crore in two tranches of Rs 10,000 crore each. The auctions will be conducted on August 27 and September 3.

With the heightening of COVID-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.

The auctions would be conducted on 27th August and 3rd September: Reserve Bank of India (RBI) https://t.co/ImFG6LnDpA

— ANI (@ANI) August 25, 2020

RBI also added that it will buy government securities including 6.18 per cent, 8.24 per cent, 5.79 per cent and 7.95 per cent maturing on November 4, 2024, February 15, 2027, May 11, 2030, and August 28, 2032, respectively.

On the other hand, it will sell securities that mature between October 2020 and November 2020. The RBI has been constantly reviewing current and evolving liquidity and market conditions.

Eligible participants should submit their bids and offers in electronic format on the RBI core banking solution (E-Kuber) system between 10 and 11 am.

The result of auctions will be announced on the same day and successful participants should ensure availability of funds and securities in their current account or SGL account by 12 noon on August 28.