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In a move aimed at easing liquidity pressures and stabilising financial conditions, the Reserve Bank of India (RBI) on Friday announced a series of liquidity-injecting operations scheduled for December 2025.
The central bank will conduct two Open Market Operation (OMO) purchase auctions of Government of India securities, each worth Rs 50,000 crore, on December 11 and December 18, bringing the total planned infusion through OMOs to Rs 1,00,000 crore. Additionally, the RBI will undertake a USD/INR Buy/Sell Swap auction of USD 5 billion with a three-year tenor on December 16, 2025. The Reserve Bank, in a release, stated that detailed operational guidelines will be issued separately and emphasised that it will continue to closely monitor liquidity and market conditions to ensure their orderly functioning. According to the release, the RBI will carry out the purchases through a multi-security auction using the multiple price method, and importantly, there is no security-wise notified amount, meaning the aggregate ceiling applies collectively. The securities identified for potential purchase include seven government bonds with maturities ranging from 2029 to 2050: the 6.75 per cent GS 2029 maturing on December 23, 2029; the 7.02 per cent GS 2031 maturing June 18, 2031; the 7.26 per cent GS 2032 maturing August 22, 2032; the 6.79 per cent GS 2034 maturing October 7, 2034; the 7.54 per cent GS 2036 maturing May 23, 2036; the 6.92 per cent GS 2039 maturing November 18, 2039; and the 6.67 per cent GS 2050 maturing December 17, 2050. The central bank also reserved the right to determine the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher or lower than the target due to rounding-off, and accept or reject any bids either wholly or partially without assigning reasons. Eligible participants must submit their bids electronically through the RBI's E-Kuber platform between 9:30 a.m. and 10:30 a.m. on December 11, 2025, with physical bids permitted only in the event of system failure and required to reach the Financial Markets Operations Department before the same deadline. The RBI has stated that the auction results will be declared on December 11 itself, and successful bidders must ensure that the requisite securities are available in their SGL accounts by 12 noon on December 12, 2025. The announcement underscores the central bank's continued reliance on OMOs to manage liquidity and maintain orderly conditions in government securities markets. (ANI)
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