RBI to conduct second tranche of OMO purchase of Rs 50,000 cr on December 18

Reserve Bank of India

The Reserve Bank of India (RBI) on December 12 said it will conduct the second tranche of Open Market Operation (OMO) purchases of government securities worth Rs 50,000 crore on December 18.

The auction will take place on December 18 between 9:30 AM and 10:30 AM on the RBI’s Core Banking Solution (E-Kuber) system, central bank said in a release.

“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 December 19, 2025,” RBI release added.

The central bank will purchase 6.75% GS 2029, 6.10% GS 2031, 6.54% GS 2032, 7.18% GS 2033, 6.33% GS 2035, 7.23% GS 2039, and 7.09% GS 2054, release added.

On December 11, the central bank conducted first tranche of OMO purchases and injected Rs 50,000 crore in the banking system.

The OMO purchase operation by the RBI often helps the banking system to get durable liquidity and reduces bond yields.

The central bank has so far conducted Rs 27,280 crore worth of OMO purchases in the secondary market. According to the RBI data, the central bank conducted Rs 14,810 crore OMO purchases between November 10 and November 13, and Rs 12,470 crore between November 4 and November 7.

On December 5, Moneycontrol reported that as the defence of the Indian rupee intensifies through sustained intervention by the Reserve Bank of India (RBI), liquidity conditions in the domestic banking system have come under strain. With dollar sales tightening rupee liquidity, the bond market is increasingly pricing in the possibility of an Open Market Operation (OMO) purchase of government securities in the December monetary policy review to ease system-level liquidity stress.