RBI pumps ₹50,000 crore into banking system via OMO purchase; second tranche on March13

The Reserve Bank of India on Monday injected ₹50,000 crore of durable liquidity into the banking system through an open market operation (OMO) purchase of government securities, the first tranche of a planned ₹1 lakh crore liquidity infusion this week.

The central bank bought a basket of seven bonds in the auction, including the 6.01% 2030, 6.10% 2031, 7.18% 2033, 6.19% 2034, 6.33% 2035, 6.92% 2039 and 7.30% 2053 government securities, according to auction results released on Monday.

The largest amount was purchased in the 6.33% government security 2035, where the RBI accepted ₹13,507 crore worth of bids, followed by ₹13,494 crore of the 6.01% GS 2030.

The cut-off yields ranged from 6.2757% for the 2030 bond to 7.3387% for the 2053 bond, the RBI said.

The operation forms part of the central bank’s plan, announced on March 6, to purchase government securities worth ₹1,00,000 crore in two tranches of ₹50,000 crore each to ease liquidity conditions in the financial system.

The second OMO purchase auction is scheduled for March 13.

The RBI had said the decision to conduct the OMO purchases was taken after reviewing prevailing 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,” the RBI had said.

The OMO purchase auction was announced ahead of expected heavy outflows from the banking system due to advance tax and Goods and Services Tax (GST) payments scheduled later this month.

The liquidity in the banking system, currently, is estimated to be in surplus of around ₹2.41 lakh crore.