RBI ₹50,000 Crore OMO Sale to Absorb Durable Liquidity
Why in the news
With surplus liquidity high, the central bank began a large sale of government bonds to drain money from the system.
Key facts
- Action: OMO sale of ₹50,000 crore in Government Securities, aimed at durable liquidity.
- Overall programme: ₹1 trillion, of which this was the first tranche.
- Remaining schedule: ₹25,000 crore each on 21 and 28 September 2026.
| Indicator (mid-September) | Level |
|---|---|
| Net liquidity surplus | ₹7.37 trillion |
| Durable liquidity (estimate) | About ₹14 trillion |
| WACR | 5.05% |
| Repo rate | 5.25% |
Exam angle
- OMO sale: absorbs liquidity from the system.
- Instrument sold: Government Securities.
- WACR (5.05%) sat below the repo rate (5.25%).