RBI is all set to purchase and sell the government securities in the market from next week. The government keep on rotating the government securities in the market to maintain the economic liquidity in the market.
RBI also announced that it is going for the mass purchase and sale of government securities worth 10,000 crores on May 6. This is known as OPM (Open Market Operations). The decision is taken after viewing the current market liquidity scenario.
The government further announced that it will decide the quantum of such purchase and sale. The government made it clear that it reserves exclusive rights in such a case. The securities will be offered through an auction. The results of such an auction will be announced on the same day.
RBI is all set to maintain the economic position of the country through government securities. It can be done in two modes- Injection or Leakages. In view of the current situation, the government is expected to insert some injection in the form of money through purchase of government securities from the open market.