The Reserve Bank of India (RBI) sold government securities worth Rs 25,000 crore on Monday as part of its planned Rs 1 lakh crore Open Market Operation (OMO) programme. The auction attracted strong demand, with participants submitting bids worth Rs 84,982 crore, more than three times the amount put up for sale.
The move comes as the central bank continues to manage surplus liquidity in the banking system following significant foreign currency inflows, including funds raised through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits.
RBI OMO Auction Gets Rs 84,982 Crore in Bids
According to the RBI’s detailed auction results, securities with an aggregate face value of Rs 25,000 crore were notified for the sale.
Participants submitted bids totaling Rs 84,982 crore, while the RBI accepted the entire notified amount of Rs 25,000 crore.
The latest operation is part of the central bank’s broader liquidity-management strategy and reflects the strong demand from market participants for the government securities offered in the auction.
Rs 1 Lakh Crore OMO Programme
The RBI announced its Rs 1 lakh crore OMO sale programme on September 11 after reviewing prevailing and emerging liquidity conditions.
The programme was structured in three separate auctions. The RBI planned to sell government securities worth Rs 50,000 crore on September 17, followed by Rs 25,000 crore each on September 21 and September 28.
With Monday’s Rs 25,000 crore auction completed, the central bank has now conducted Rs 75,000 crore of the planned Rs 1 lakh crore sales.
An OMO sale involves the RBI selling government securities to market participants. As buyers pay for these securities, rupee liquidity is absorbed from the banking system.
Foreign Currency Inflows Add to Liquidity
The RBI’s liquidity-management measures are taking place alongside substantial foreign exchange inflows through its special USD-INR swap facility.
Separate data released by the central bank on Monday showed that total inflows under the facility had reached USD 143.596 billion as of September 18.
FCNR(B) deposits accounted for the largest share at USD 132.98 billion. Overseas Foreign Currency Borrowings (OFCB) contributed USD 5.32 billion, while External Commercial Borrowings (ECB) accounted for USD 5.296 billion.
The RBI introduced the special USD-INR Forex Swap facility covering FCNR(B) deposits, ECB and OFCB inflows on June 8, 2026. FCNR(B) deposits were mobilised until August 31, while the facility covering ECB and OFCB inflows remains available until December 31.
RBI Accepts Bids for Five Securities
During Monday’s OMO auction, the RBI accepted bids for five of the six government securities offered.
The two largest allocations were Rs 11,512 crore for the 6.10 per cent GS 2031 and Rs 8,758 crore for the 7.95 per cent GS 2032.
However, the central bank did not accept any bids for the 8.28 per cent GS 2027. A total of 20 bids worth Rs 3,082 crore were submitted for this security, but the amount accepted by the RBI was nil.
Disclaimer: This article is intended for general informational purposes only and should not be considered financial, investment or trading advice. Figures and market-related information are based on the details available at the time of publication and may change. Readers should verify information with official RBI sources and consult a qualified financial professional before making investment decisions.