New Delhi: In an effort to ensure orderly market conditions and congenial financial situation, the Reserve Bank of India on Monday decided to conduct additional special open market operation involving the simultaneous purchase and sale of government securities for an aggregate amount of Rs 20,000 crore in two tranches of Rs 10,000 crore each. Also Read - RS Passes Banking Amendment Bill 2020, Co-op Banks to Function Under RBI's Supervision Now | Key Points
As per the updates from the RBI, the auctions would be conducted on September 10 and 17. The RBI said it remains committed to conduct such operations as warranted by the market conditions. Also Read - RBI Issues Norms For Banks to Appoint Chief Compliance Officers
Part of the new measures, the RBI will also conduct term repo operations for an aggregate amount of Rs 100,000 crore at floating rates in the middle of September to assuage pressures on the market on account of advance tax outflow. Also Read - Last Date to Submit Life Certificates by Pensioners Now December 31
In the statement, the RBI said that it will stand ready to conduct market operations as required through a variety of instruments so as to ensure orderly market functioning.
The RBI further added that it will use all instruments to revive the economy by maintaining congenial financial conditions, mitigate the impact of COVID-19 and restore the economy to a path of sustainable growth while preserving macroeconomic and financial stability.