RBI injects Rs 50,000 cr in banking system via OMO purchase auction

Reserve Bank of India

The Reserve Bank of India (RBI) on December 29 injected Rs 50,000 crore through Open Market Operation (OMO) purchase of Government of India securities, in to the banking system.

The central bank purchased Rs 10,320 crore worth of 6.79% GS 2029 bonds, Rs 13,733 crore of 7.61% GS 2030, Rs 9,443 crore worth of 7.26% GS 2033, Rs 7,253 crore worth of 6.79% GS 2034, Rs 5,505 crore worth of 6.67% GS 2035, and Rs 3,746 crore worth of 7.30% GS 2053, RBI said in a release.

However, the central bank did not accept any bids for 7.18% GS 2037 bonds.

On December 23, the RBI had announced additional measures such as conduct of Open Market Operation (OMO) purchase of governments securities and USD/INR Buy/Sell swap auction to inject durable liquidity to the banking system after review of current liquidity and financial conditions.

The central bank said it will conduct Rs 2 lakh crore OMO purchase auctions of Government of India securities in four tranches of Rs 50,000 crore each. These auctions will take place on December 29, 2025, January 05, 2026, January 12, 2026, and January 22, 2026, release said.

RBI will also conduct USD/INR Buy/Sell Swap auction of $10 billion for a tenor of 3 years to be held on January 13, 2026, the release added.

This was done after the liquidity in the banking system turned deficit after heavy outflows on account of advance tax and goods and services tax (GST) payments.

Currently, the liquidity in the banking system stood at deficit of around Rs 62,301.77 crore.