The RBI will buy and sell bonds worth Rs 10,000 crore each on that day.
"On a review of current liquidity and financial conditions, the RBI has decided to conduct simultaneous purchase and sale of government securities under OMO for an aggregate amount of Rs 10,000 crore each on February 25, 2021," said the central bank in a statement.
With Covid-19 pandemic risks and their impact on economy, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads.
RBI Governor Shaktikanta Das recently assured investors that its stance on liquidity remains accommodative and that the government's Rs 12.06 lakh crore borrowing programme for the fiscal year starting April will be managed in a smooth and orderly manner.
The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
The RBI has said it remains committed to use all instruments at its command 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.
Mumbai , February 15
The Reserve Bank of India (RBI) said on Monday that it will conduct simultaneous sale and purchase of government bonds under special open market operations (OMOs) on February 25.
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