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RBI’s First FY26 OMO Draws Bids Four Times Notified Amount

4 April 20251 min read
BANKING & FINANCERBI’s First FY26OMO Draws BidsFour TimesNotified Amount4 April 2025safalsetu.com

Why in the news

Demand for the first OMO purchase of the new financial year was very strong, and RBI dropped its fortnightly variable rate repo operation because liquidity had improved.

Key facts

  • Banking liquidity turned mildly surplus from March 29.
  • February VRRs worth ₹1.25 lakh crore mature on Friday, creating liquidity demand.
  • Bonds were offered nearer market prices, unlike earlier discounted OMOs.
  • Three more ₹20,000 crore OMO purchases are planned; a ₹30,000 crore 10-year G-sec auction is due Friday.

Exam angle

  • OMO: RBI buying or selling government securities to manage liquidity.
  • Related term: Variable Rate Repo (VRR).

Test yourself

1. In RBI's first FY26 OMO purchase, what was the notified amount?

The notified amount was ₹20,000 crore; bids were ₹80,820 crore.

2. Which bond got the highest acceptance, ₹6,660 crore, in the first FY26 OMO purchase?

The notes state the highest acceptance was for the 8.24% GS 2033 bond.

3. Which RBI operation for April 4-17 was skipped because liquidity improved?

RBI decided to skip the 14-day main VRR operation.

This topic is part of Daily Current Affairs 4 April 2025 (24 topics).

All topics of the dayDay quizApril 2025

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