Indian stock market is doing good despite Greece and Chinese financial crisis. To absorb the liquidity in the banking system Reserve Bank of India is taking all the possible measures. In its official release RBI told they are selling out bonds worth Rs 10000 Cr in secondary market on Tuesday. RBI to Sell Bonds worth Rs 10000 Cr is the question making rounds across India.
RBI to Sell Bonds worth Rs 10000 Cr
RBI to sell bonds worth Rs 10000 Cr in the OMO sales. These OMO sales is used purely to shed of the liquidity in Indian banking system. There are certain factors that lead RBI to sell bonds worth Rs 10000 Cr in auctions. First factor being liquidity surplus in range of about Rs 11,000-50,000 Cr while two months ago but liquidity increased by about Rs 60,000-70,000 Cr said in an official release by Reserve Bank of India.
- Reserve Bank of India would be selling the bonds maturing in 3 to 20 years later this week in the auction.
- The auction is expected to run for a week and sell the bonds worth Rs 10000 Cr to reduce the liquidity in Indian banking system.
- The is expected to start on 14 July 2014 with Four government securities with maturities will be up for sale this Tuesday.
Open Market Operation:
Reserve Bank of India is going to sell all the bonds in the OMO. In a detailed notification given by the RBI, the bonds worth Rs 10000 crore will be sold out in open market operation method. All bonds will be sold in auction that are have a maturity of 3 to 20 years. This is happening get more liquidity from banking. RBI to sell bonds worth Rs 10000 cr.
RBI said in a statement that its going to sell 7.46 per cent bonds maturing in 2017 for Rs 6000 crore. The 7.4 per cent 2035 bonds for Rs 4,000 crore.