- Purchases: Central Govt purchased G-Secs or GS – 6.79% GS 2027; 7.26% GS 2029; 6.68% GS 2031; and 6.57% GS 2033 – using the multiple price auction method aggregating Rs10,000 crore.
- Sellings: RBI sold four DTBs – two 182 DTBs maturing on October 15 and October 22, 2020; and two 364 DTBs maturing on April 22 and April 29, 2021.
Point to be noted:
-RBI reserves the right to decide on the quantum of purchase/sale of individual securities, accept bids/offers for less than the aggregate amount, purchase/sell marginally higher/lower than the aggregate amount due to rounding-off or accept or reject any or all the bid/offers either wholly or partially without assigning any reasons.
RBI extended borrowing facility provided to the banks till Sept 30, 2020
RBI has decided to extend the enhanced borrowing facility provided to the banks to meet their liquidity shortages till September 30 from till June 30, 2020.
- Notably, as a temporary measure, RBI had increased the borrowing limit of scheduled banks under the marginal standing facility (MSF) scheme from 2% to 3% of their Net Demand and Time Liabilities (NDTL) with effect from March 27, 2020.
Static points about Reserve Bank of India (RBI):
-It was established on the recommendation of the Hilton Young Commission.
-RBI is responsible only for printing the currency notes. Minting of coins is done by the Government of India.
-Dr.Manmohan Singh is the only Prime Minister to have also served as the Governor of RBI.