RBI advances OMO purchase auctions to Jan 29 and Feb 5 to infuse ₹1 lakh crore into banking system
The RBI revised the schedule of its open market operation (OMO) purchase auctions, moving them to 29 January and 5 February. The central bank plans to infuse ₹1 lakh crore via two tranches of ₹50,000 crore each by purchasing government securities through e-Kuber auctions.
The Reserve Bank of India (RBI) has revised the dates for its open market operation (OMO) purchase auctions, rescheduling them to 29 January 2026 and 5 February 2026. The move is aimed at infusing durable liquidity into the banking system, as the central bank seeks to ensure orderly liquidity conditions amid evolving market dynamics.
Moneycontrol reported that the RBI will inject ₹1 lakh crore in two tranches of ₹50,000 crore each by purchasing government securities through OMO auctions. The first auction is set for 29 January, and will be conducted on the RBI’s Core Banking Solution (e-Kuber) system. The RBI said the auction window on 29 January will run between 9:30 am and 10:30 am.
The central bank also indicated the set of government securities it plans to purchase in the operation, spanning multiple maturities. Market participants track such announcements closely because OMO purchases influence systemic liquidity, short-term money market rates and the broader bond yield environment, especially when liquidity tightness or seasonal outflows lead to volatility.
Liquidity operations typically work by increasing the banking system’s rupee resources when the RBI buys government securities from banks and primary dealers. For banks, improved liquidity conditions can ease funding pressures, support credit flow and reduce the need for frequent short-term borrowing. The revised timetable signals a more front-loaded approach to liquidity support, with the second tranche scheduled for 5 February.