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RBI to sell Rs 12,000 crore govt bonds via open market operations

PTI November 27, 2014 12:17 IST
PTI

New Delhi: Reserve Bank of India (RBI) on Wednesday said it would sell Rs 12,000 crore government bonds through Open Market Operations (OMO) to mop up liquidity from the system.

"On an assessment of current and evolving liquidity conditions, Reserve Bank has decided to conduct sale of government securities under Open Market Operations for an aggregate amount of Rs 12,000 crore on December 1 through multi-security auction using the multiple price method," the central bank said in a statement.

The central bank would decide on the quantum of sales of individual securities, it said.

RBI would have option to accept bids for less than the aggregate amount of Rs 12,000 crore.

As part of the OMOs, the RBI will sell government securities maturing in 2017 (bearing interest rate of 8.07 per cent), 2020 (7.80 per cent), 2022 (8.08 per cent) and 2027 (8.26 per cent).