RBI to conduct another OMO to infuse Rs 50,000 crore to ease liquidity crunch
With an aim to ease the liquidity crunch, the Reserve Bank of India (RBI) has decided to conduct open market operation (OMO) purchase auction of Government of India securities for an aggregate amount of Rs 50,000 crore to be held on March 25, 2025. The central bank will purchase Government securities through a multi-security auction using the multiple price method.
Further, the Reserve Bank reserves the right to decide on the quantum of purchase of individual securities; accept bids for less than the aggregate amount; purchase marginally higher/lower than the aggregate amount due to rounding-off; and accept or reject any or all the bids either wholly or partially without assigning any reasons.
The result of the auction will be announced on the same day and successful participants should ensure availability of securities in their SGL account by 12 noon on March 26, 2025. In the recently held OMO Purchase auction on March 18, 2025, the Reserve Bank of India received bids exceeding twice the notified amount (i.e. Rs 1,01,114 crore against the notified amount of Rs 50,000 crore).
