The Reserve Bank of India (RBI) will conduct another ₹25,000 crore open market operation (OMO) sale of government securities on September 28, 2026. The auction will mark the final tranche of the central bank’s ₹1 lakh crore OMO sale programme aimed at managing surplus liquidity in the banking system.
The RBI had planned the overall bond sale in three stages — ₹50,000 crore on September 17, followed by ₹25,000 crore each on September 21 and September 28. The latest auction will cover six government securities with maturities ranging from March 2029 to August 2032.
Through an OMO sale, the central bank sells government bonds to eligible market participants. The payment made for these securities moves liquidity from the banking system to the RBI, making OMOs one of the tools used to manage liquidity conditions.
RBI’s OMO Sale Comes Amid Large Forex Inflows
The latest liquidity-management measures come after substantial foreign currency inflows through the RBI’s special USD-INR forex swap facility.
According to the latest data, total foreign exchange inflows under the facility reached USD 143.596 billion. FCNR(B) deposits accounted for USD 132.980 billion, while Overseas Foreign Currency Borrowings contributed USD 5.320 billion and External Commercial Borrowings added USD 5.296 billion.
Under the arrangement, banks bring foreign currency into the system and receive rupee liquidity in return. The large inflows have contributed to higher rupee liquidity, prompting the RBI to use measures such as OMO sales to absorb part of the surplus.
Recent reporting also indicates that the banking system’s liquidity surplus has declined from the very high levels recorded earlier in September, following RBI liquidity-management measures and seasonal tax outflows.
Six Government Securities to Be Offered
For the September 28 auction, the RBI will offer six government securities. They include bonds maturing between 2029 and 2032, with the securities carrying different coupon rates.
There is no separate notified amount for each security. The RBI will determine the amount allocated to individual securities based on the bids received and has retained the option to accept bids for less than the aggregate amount.
Eligible participants will submit their bids electronically through the RBI’s Core Banking Solution, E-Kuber, between 9:30 am and 10:30 am on September 28. Physical bids will be accepted only if there is a system failure.
The auction results will be announced on the same day. Successful participants are required to ensure that sufficient funds are available in their current accounts by noon on September 29.
The September 28 auction completes the ₹1 lakh crore OMO sale programme announced by the RBI earlier this month as part of its ongoing liquidity-management operations.
Disclaimer: This article is for general informational purposes only and should not be considered investment, financial or banking advice. Market conditions and RBI liquidity operations may change. Readers should refer to official RBI announcements and consult a qualified financial professional before making financial decisions.