The OMO operation will help ease tight liquidity situation triggered by series of default by group companies of IL&FS.
The eligible participants should submit their offers in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 15.
The result of the auction will be announced on the same day and payment to successful participants will be made the following day.
The RBI had earlier stated that the system liquidity will move into deficit in the second half of 2018-19 and the evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management.
As part of the OMOs, the RBI will purchase government securities maturing in 2021 bearing interest rate of 8.79 per cent, 2022 (6.84 per cent), 2024 (8.40 per cent), 2027 (8.24 per cent) and 2033 (6.57 per cent).
The RBI said it has the right to decide on the quantum of purchase of individual securities and can also accept offers for less than Rs 12,000 crore.
It may as well purchase marginally higher than the aggregate amount due to rounding-off effect, it said, adding it can also accept of reject any or all the offers either wholly or partially without assigning any reason.
OMOs are the tools which can be used to either inject or drain liquidity from the system.
It is employed to adjust rupee liquidity conditions in the market on a durable basis.
If there is excess liquidity, the RBI resorts to sale of securities and sucks out the rupee liquidity. Similarly, when the liquidity conditions are tight, it buys securities from the market, thereby releasing money into the market.