RBI absorbs Rs 25,000 crore of excess liquidity in second OMO tranche

The Reserve Bank of India announced that it had accepted Rs 25,000 crore in bids as part of the second tranche of its open-market operation, targeting surplus liquidity in the banking sector. Accepted bids covered Rs 11,512 crore of the 6.10% 2031 bond, Rs 8,758 crore of the 7.95% 2032 bond, Rs 2,300 crore of the 6.75% 2029 bond, Rs 2,250 crore of the 7.17% 2030 bond, and Rs 180 crore of the 7.17% 2028 bond, while the 8.28% 2027 issue received no interest.

The RBI estimates one outlet liquidity surplus at roughly Rs 6.05 lakh crore, driven by foreign-currency deposits and month-end government outlays. By selling securities, banks pay cash to the central bank, thereby reducing rupee liquidity. The programme was announced as a three-tranche effort totalling Rs 1 lakh crore, with the remaining Rs 25,000 crore tranche scheduled for September 28.