4 days ago
RBI Announces ₹1 Lakh Crore Bond Sales to Drain Liquidity
India’s central bank plans to sell government bonds worth ₹1 lakh crore.
It will conduct the sales in three separate auctions.
The auctions will take place on September 17, 21, and 28, 2026.
The RBI wants to remove some extra money from the banking system.
Banks received much more foreign currency than expected under a special RBI scheme.
This increased the amount of rupees available in the financial system.
The extra cash pushed some short-term interest rates below the RBI’s policy rate.
Bond prices fell and yields rose after the announcement.
The Reserve Bank of India will sell government bonds worth ₹1 lakh crore through three auctions.
The auctions are scheduled for September 17, September 21, and September 28, 2026.
The sales will cover bonds maturing between fiscal 2029 and fiscal 2032.
India’s 10-year bond yield rose six basis points to 7.035% after the announcement.
The RBI said the move will absorb surplus cash created by large foreign-exchange inflows.
- Who
- The Reserve Bank of India announced the bond sales.
- What
- The RBI will conduct open market sales of government bonds worth ₹1 lakh crore.
- Where
- The auctions will be conducted electronically through the RBI’s E-Kuber system in India.
- When
- The announcement was made on September 11, 2026; auctions are scheduled for September 17, 21, and 28.
- Why
- The RBI aims to absorb surplus liquidity in the banking system after large foreign-exchange inflows.
Key facts
- Total sale
- ₹1 lakh crore
- Auction tranches
- ₹50,000 crore, ₹25,000 crore, and ₹25,000 crore
- Auction dates
- September 17, September 21, and September 28, 2026
- Bond maturities
- Fiscal 2029 to fiscal 2032
- Auction method
- Multi-security auction using the multiple price method
- 10-year bond yield
- Rose six basis points to 7.035%
- Significance
- The first net bond sale by the RBI in two years
Quotes
Reserve Bank of India
India’s central bank, which announced the bond auctions
“Eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 9:30 am and 10:30 am on September 17, 2026. The result of the auction will be announced on the same day.”
freepressjournal.in
Sources
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