The Reserve Bank of India on September 11 announced an open market sale of bonds, one of the most potent liquidity-draining tools.
The Reserve Bank of India will sell bonds maturing in fiscal 2029 to fiscal 2032 worth Rs 1 lakh crore in its first net sale of bonds in two years, after it sold notes in the secondary market in September 2024.
The central bank had conducted simultaneous purchase and sale of bonds in fiscal 2021 and 2022.
"On a review of current and evolving liquidity conditions, the Reserve Bank has decided to conduct OMO sale auctions of Government of India securities for an aggregate amount of Rs 1 lakh crore in three tranches of Rs 50,000 crore, Rs 25,000 crore, and Rs 25,000 crore to be held on September 17, 2026, September 21, 2026, and September 28, 2026, respectively, through multi-security auction using the multiple price method," said RBI in a press release.
"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," said RBI.