Reserve Bank of India to sell Rs 25,000 crore in government bonds

The Reserve Bank of India (RBI) will conduct an Open Market Operation (OMO) sale of government securities totaling Rs 25,000 crore on September 28. This auction represents the final stage of a Rs 1 lakh crore liquidity-drain programme.

The central bank is implementing these measures to absorb surplus rupee liquidity from the banking system. This surplus has increased due to significant foreign currency inflows, particularly through the special dollar-rupee swap facility. Data indicates that Foreign Currency Non-Resident (Bank) deposits alone have reached USD 132.980 billion.

The upcoming auction will offer six different government securities with maturities ranging from March 2029 to August 2032. The RBI will determine the specific amount to be sold under each individual security.