RBI advances OMO purchases to 29 January and 5 February to infuse ₹1 lakh crore liquidity
The Reserve Bank of India has revised the schedule for its open market operation purchases, moving auctions to 29 January and 5 February. The central bank plans to inject ₹1 lakh crore in two tranches of ₹50,000 crore each by buying government securities through the e-Kuber system.
- Reporting desk
- Health India Network News Desk
- First published
Two OMOs, ₹50,000 crore each, to ease system liquidity
The Reserve Bank of India (RBI) has rescheduled its open market operation (OMO) purchase auctions to 29 January 2026 and 5 February 2026, aiming to inject durable liquidity into the banking system. The plan involves ₹1 lakh crore of bond purchases in two tranches of ₹50,000 crore each.
Under OMOs, the RBI buys government securities from the market, releasing rupee liquidity and helping ease funding conditions. Market participants often watch these operations closely because they can influence short-term rates, bond yields and overall financial conditions.
Auction mechanics and timing
According to the schedule, the first auction will be held on 29 January between 9:30 am and 10:30 am on the RBI’s core banking solution platform (e-Kuber). Results are to be announced the same day, with settlement-related timelines communicated for successful participants.
The RBI’s bond-buying programme is intended to address liquidity tightness that can build up due to factors such as government cash balances, currency demand, and forex operations that may absorb rupee liquidity. By injecting funds, the central bank also supports smoother transmission of monetary policy.
Why this matters for borrowers and markets
When liquidity is comfortable, banks can fund themselves more easily, which can reduce stress in money markets and temper abrupt moves in short-term rates. Over time, these conditions can influence lending costs for households and businesses, though the pass-through depends on bank balance sheets and credit demand.
Bond investors will track how much of the announced quantum is absorbed, which securities are purchased, and whether additional liquidity measures follow. The market response is typically visible in overnight rates, term money rates and the government securities yield curve.