|
The Reserve Bank of India (RBI) on Monday sold Rs 25,000 crore of government securities through an Open Market Operation (OMO), as the central bank continues to absorb surplus liquidity from the banking system following large foreign currency inflows, including through Foreign Currency Non-Resident (Bank) deposits.
The OMO sale received bids worth Rs 84,982 crore, more than three times the Rs 25,000 crore notified amount, with the RBI accepting the full amount offered. According to the RBIs detailed OMO auction results, the Aggregate Amount (Face value) notified by RBI was Rs 25,000 crore, while the Total amount bid (Face value) by participants stood at Rs 84,982 crore. The Total amount accepted (Face value) by RBI was Rs 25,000 crore. The operation is part of the RBIs Rs 1 lakh crore OMO sale programme announced earlier this month to manage liquidity conditions. Announcing the programme on September 11, the central bank had said, 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 1,00,000 crore. The programme is being conducted in three tranches - Rs 50,000 crore on September 17 and Rs 25,000 crore each on September 21 and September 28. With Mondays auction, the RBI has completed Rs 75,000 crore of the planned sales. An OMO sale withdraws rupee liquidity from the banking system as participants pay the RBI for the government securities. The liquidity-management operations come amid a sharp rise in foreign exchange inflows under the central banks special USD-INR swap facility. Separate RBI data released on Monday showed total inflows under the facility at USD 143.596 billion as of September 18, with FCNR(B) deposits accounting for the bulk at USD 132.98 billion. Overseas Foreign Currency Borrowings contributed USD 5.32 billion and External Commercial Borrowings USD 5.296 billion. The RBI said, RBI had introduced a special USD-INR Forex Swap facility covering FCNR(B) deposits, ECB and OFCB inflows on June 08, 2026. The FCNR(B) deposits were mobilised till August 31, while the facility for ECB and OFCB inflows remains open till December 31. In Mondays OMO auction, the RBI accepted bids across five of the six government securities offered. It accepted Rs 11,512 crore in the 6.10 per cent GS 2031 and Rs 8,758 crore in the 7.95 per cent GS 2032, the two largest allocations. The RBI rejected all bids for the 8.28 per cent GS 2027. Twenty bids worth Rs 3,082 crore were received for the security, but the amount accepted was NIL. (ANI)
|
