The Reserve Bank of India (RBI) has announced that it will purchase Rs 10,000 crore in government bonds under the open market operations programme to to maintain financial stability in the system in the wake of coronavirus outbreak in the country.

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.It is important to ensure that all market segments remain liquid and stable, and function normally," the RBI said in a press release on Wednesday.

Accordingly, the Reserve Bank has decided to conduct open market operations on Friday in the form of purchase of an aggregate amount of Rs 10,000 crore of government securities through a multi-security auction using the multiple price method.

As per the RBI notification, eligible participants may submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on March 20, 2020. Physical offers would be accepted only in the event of system failure, it said.

The result of the auction will be announced on the same day and payment to successful participants will be made during banking hours on March 23, 2020. Successful participants should ensure availability of requisite amount of securities in their SGL accounts by 12 noon on March 23, 2020, the RBI said.

Earlier on Monday, RBI Governor Shaktikanta Das said the regulator had "enough policy tools and stands ready to take any measures" needed to help the economy tide over the impact of the coronavirus pandemic.

 In two liquidity enhancing measures, Das announced another round of $2 billion dollar-rupee swap on March 23, and said the RBI would continue to conduct the long-term repo operations (LTROs) of up to Rs 1 lakh crore as and when the market needed.