RBI announces OMO of govt securities worth ₹1 lakh crore in two tranches
RBI announces OMO of govt securities worth ₹1 lakh crore in two tranches
The Reserve Bank of India (RBI) has announced open market operations (OMO) to purchase government securities worth ₹1 lakh crore in two tranches, aiming to enhance liquidity in the financial system. The auctions, scheduled for March 2026, will involve multiple securities and employ a multiple price method, with results announced on the same day.
Under OMO, the banking regulator purchases government security from the banks and the financial institutions to inject liquidity in the system.
Banking regulator Reserve Bank India (RBI) today announced open market operation (OMO) purchase auctions of government securities worth ₹100,000 crore to boost liquidity in the financial system.
“On a review of the current liquidity and financial conditions, the Reserve Bank has decided to conduct OMO purchase auctions of government of India securities for an aggregate amount of ₹1,00,000 crore in two tranches of ₹50,000 crore each, to be held on March 09, 2026, and March 13, 2026,” RBI said in a release short while ago.
“The Reserve Bank reserves the right to: decide on the quantum of purchase of individual securities; accept offers for less than the aggregate amount; purchase marginally higher/lower than the aggregate amount due to rounding-off; accept or reject any or all the offers either wholly or partially without assigning any reasons,” it said in the release.
Reserve Bank will purchase the following Government securities through a multi-security auction using the multiple price method on March 09, 2026: 6.01% GS 2030 bearing maturity date of 21-Jul-2030, 6.10% GS 2031 (maturity 12-Jul-2031), 7.18% GS 2033 (maturity 14-Aug-2033), 6.19% GS 2034 (16-Sep-2034), 6.33% GS 2035 (5-May-2035), 6.92% GS 2039 (18-Nov-2039), 7.30% GS 2053 (19-Jun-2053). “The result of the auction will be announced on the same day and successful participants should ensure availability of securities in their SGL account by 12 noon on March 10, 2026,” it said.
What is OMO?
Under OMO, the banking regulator purchases government security from the banks and the financial institutions to inject liquidity in the system. The move helps liquidity flow into the economy. It may be noted that the OMOs announced today are part of an earlier announcement by the RBI.
In the monetary policy statement in December, RBI governor Sanjay Malhotra said, “After reviewing the liquidity situation and the outlook, we have decided to conduct open market operation (OMO) purchases of government securities amounting to ₹1,00,000 crore and 3-year USD/INR Buy Sell swaps of USD 5 billion this month. The details will be notified separately later today. These measures will ensure adequate durable liquidity in the system and further facilitate monetary transmission.”