RBI announces second tranche of OMO buys valued at Rs 50,000 crore
New Delhi, Dec 12 (LatestNewsX) – The Reserve Bank of India confirmed on Friday that it will conduct its second round of Open Market Operations, buying government securities worth ₹50,000 crore on December 18.
The RBI said the auction will run from 9:30 a.m. to 10:30 a.m. on that day, using its core banking platform E‑Kuber. Results will be released the same day. Winning bidders must have the purchased securities posted to their Subsidiary General Ledger accounts by noon on December 19.
The deal will cover a range of benchmark bonds, including the 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.
Typically, such OMO purchases inject durable liquidity into the banking system, supporting credit flows. Earlier, the RBI had bought ₹50,000 crore of bonds on Wednesday to further boost liquidity and encourage economic growth.
This purchase is part of last week’s monetary policy package, which also included a ₹1 lakh‑crore market injection via government securities and a foreign‑exchange swap worth about $5 billion.
The central bank has been selling USD to restrain a sharp rupee decline, which has drawn liquidity out of banks and, at times, pushed up market rates.
Reserve Bank Governor Sanjay Malhotra emphasized on Friday that the RBI will provide ample liquidity without targeting a precise surplus level of around 1 % of net demand and time liabilities (NDTL).
“Monetary transmission is happening, and we will provide sufficient liquidity to support it,” he said.
He added that current liquidity sometimes exceeds 1 % of NDTL, hovering between 0.6 % and 1 %, and occasionally higher. “The exact number—whether 0.5, 0.6, or 1 %—should not matter. What matters is that banks have enough reserves to function smoothly,” he said.
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