On Wednesday, the Reserve Bank of India (RBI) announced the purchase of government securities through open market operations (OMO) worth Rs 10,000 crore on 20 March.
"With the heightening of Covid-19 pandemic risks, certain financial market segments have been experiencing a tightening of financial conditions as reflected in the hardening of yields and widening of spreads," the central bank said in a release.
"It is important to ensure that all market segments remain liquid and stable, and function normally," it added.
The OMO purchase will be performed through a multi-security auction.
There is no notified amount against any of the securities within the aggregate ceiling of Rs 10,000 crores set for the operation.
The Reserve Bank said it reserves the right to decide on the quantum of purchase of individual securities, accept offers for less than or higher than the aggregate amount of Rs 10,000 crores (including due to rounding off) and also to accept or reject any or all the offers either wholly or partially without assigning any reason.