The Reserve Bank of India (RBI) has announced that it will purchase Government of India securities (G-Secs) worth ₹20,000 crore through Open Market Operations (OMO) on April 29, 2025. This move is part of the central bank’s efforts to manage liquidity and interest rates in the economy.
What is an OMO Purchase?
An OMO purchase is when the RBI buys government bonds from the open market. This helps in injecting money (liquidity) into the banking system. When RBI buys these securities, it pays money to the banks and financial institutions, increasing the amount of money available for lending and investment.
Details of the Auction
The RBI will conduct the auction through its electronic platform E-Kuber, between 9:30 am and 10:30 am on April 29. The auction will follow the multiple price method, meaning each successful bidder will pay the price they bid, not a uniform price.
Here are the government securities that RBI plans to purchase:
| Security (ISIN) | Coupon Rate | Maturity Date |
|---|---|---|
| IN0020240050 | 7.04% | 03-Jun-2029 |
| IN0020210095 | 6.10% | 12-Jul-2031 |
| IN0020220060 | 7.26% | 22-Aug-2032 |
| IN0020200096 | 6.19% | 16-Sep-2034 |
| IN0020060045 | 8.33% | 07-Jun-2036 |
Although the total purchase will be ₹20,000 crore, there is no fixed amount set for each individual security.
RBI’s Rights in the Auction
The RBI reserves the right to:
- Decide how much of each security it will buy.
- Accept bids for less than ₹20,000 crore if needed.
- Buy slightly more or less due to rounding.
- Fully or partially reject any bid without giving a reason.
Participation Process
Only eligible participants like banks and financial institutions can take part in this auction. They must submit their bids electronically through the RBI’s E-Kuber system between 9:30 am and 10:30 am on April 29.
If the E-Kuber system fails, physical bids will be accepted. These must be submitted to the RBI’s Financial Markets Operations Department before 10:30 am. The prescribed bid form is available on the RBI website.
Result Announcement and Settlement
The results of the auction will be announced on April 29 itself. Successful participants must ensure the securities are transferred to RBI’s account by 12 noon on April 30, 2025.
Conclusion
This OMO purchase shows RBI’s proactive step in managing liquidity in the banking system. It also helps control interest rates and supports economic growth by ensuring enough money is available for businesses and consumers.
