The RBI on Thursday announced it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 7, 2021 The decision was taken after a review of current liquidity and financial conditions, the Reserve Bank said in a statement.
Simultaneous purchase and sale of G-sec under OMOs, popularly known as Operation Twist, involves purchasing the securities of longer maturities and selling an equal value of securities of shorter maturities.
On January 7, the RBI will purchase three government securities (G-Sec) of different maturity dates aggregating to Rs 10,000 crore and sell two securities aggregating to the same amount using the multiple price auction method.
The RBI further said it reserves the right to decide on the quantum of purchase/sale of the securities.
The result of the auctions will be announced on the same day.