Mumbai, Aug 25 (PTI) The Reserve Bank of India on Tuesday said it will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of Rs 20,000 crore in two tranches.

The auction will be in held in two tranches of Rs 10,000 crore each and will be conducted on August 27 and September 03, 2020, Reserve Bank of India (RBI) said in a statement.

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"On a review of current and evolving liquidity and market conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 20,000 crores in two tranches of Rs 10,000 crores each," it said.

On August 27, the central bank said it would be selling four securities totalling Rs 10,000 crore and will be purchasing four securities of the same amount.

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"The securities for the second tranche auction on September 03, 2020 will be announced separately," it added.

The Reserve Bank further said it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.

The simultaneous purchase and sale of government securities programme involves purchasing government securities of longer maturities and selling equal amount of securities of shorter maturities.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)