Market participants offer to sell G-Secs worth ₹1.22 lakh cr at OMO auction against ₹50K cr notified amount

The Reserve Bank of India’s open market operation (OMO) purchase auction drew sale offers of Government Securities totaling ₹1,22,525 crore on Monday, significantly exceeding the central bank’s ₹50,000 crore acquisition target. This robust response occurred amidst tight liquidity conditions, with the banking system maintaining only minimal surplus reserves.

Through the auction, the RBI acquired seven distinct Government Securities maturing from 2029 through 2053, infusing the intended ₹50,000 crore into financial markets.

Recent data indicates the banking system held a modest liquidity surplus of ₹29,872 crore as of January 11, 2026. Financial institutions maintain that efficient transmission of the cumulative 125 basis points repo rate reduction implemented between February 2025 and December 2025 requires systemic liquidity of ₹1.5-2 lakh crore.

This transaction forms part of the RBI’s broader liquidity infusion strategy announced on December 23, 2025, comprising four ₹50,000 crore tranches of G-Sec purchases totaling ₹2 lakh crore.

In complementary liquidity measures, the central bank will execute a $10 billion USD/INR buy-sell swap auction scheduled for January 13, 2026, with a three-year tenure.

Published on January 12, 2026