4 days ago
RBI Announces ₹1 Lakh Crore Government Bond Sales
The Reserve Bank of India plans to sell government bonds to banks and other eligible buyers.
These sales will happen in three auctions.
The total value of the sales will be ₹1 lakh crore.
The first auction will be worth ₹50,000 crore on September 17.
Two more auctions worth ₹25,000 crore each will follow.
The RBI said it made the decision after reviewing money conditions in the financial system.
Selling these securities absorbs money from the banking system, although the headline describes the move as helping liquidity.
The RBI will also sell short-term Treasury Bills worth ₹24,000 crore on September 16.
The Reserve Bank of India will sell government securities worth ₹1 lakh crore through three OMO auctions.
The auctions will involve ₹50,000 crore on September 17, followed by ₹25,000 crore each on September 21 and September 28.
The first auction will include six government securities maturing between March 2029 and February 2032.
Bids for the September 17 auction must be submitted electronically through the RBI’s E-Kuber system.
The RBI also announced a ₹24,000 crore Treasury Bill auction scheduled for September 16.
- Who
- The Reserve Bank of India and eligible auction participants.
- What
- The RBI announced ₹1 lakh crore of Open Market Operation government-security sales in three tranches, plus a separate ₹24,000 crore Treasury Bill auction.
- Where
- The OMO bids will be submitted electronically through the RBI’s Core Banking Solution, or E-Kuber, system.
- When
- The Treasury Bill auction is scheduled for September 16; OMO auctions are scheduled for September 17, September 21 and September 28.
- Why
- The RBI said the decision followed a review of current and evolving liquidity conditions in the financial system.
Key facts
- Total OMO sales
- ₹1 lakh crore
- OMO schedule
- ₹50,000 crore on September 17; ₹25,000 crore each on September 21 and September 28
- Auction method
- Multi-security auctions using the multiple-price method
- First auction securities
- Six government securities maturing from March 2029 through February 2032
- Treasury Bill total
- ₹24,000 crore
- Treasury Bill breakdown
- ₹9,000 crore of 91-day bills, ₹8,000 crore of 182-day bills and ₹7,000 crore of 364-day bills
- First OMO bid window
- 9:30 a.m. to 10:30 a.m. on September 17
Sources
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