The Reserve Bank of India (RBI) has announced a significant revision to its previously scheduled Open Market Operations (OMO) purchase of Government of India securities. The central bank has doubled the aggregate purchase amount from ₹20,000 crore to ₹40,000 crore, citing a review of the current and evolving liquidity conditions in the financial system.
In its earlier announcement, dated February 7, 2025 (Press Release 2024-2025/2106), the RBI had planned to conduct OMO purchases totaling ₹20,000 crore on February 13, 2025. However, in light of ongoing assessments of liquidity dynamics, the RBI has decided to enhance the scale of the operation to ensure adequate liquidity support.
“On a review of current and evolving liquidity conditions, the aggregate amount of OMO purchase has now been revised to ₹40,000 crore,” the RBI stated in its latest release.
Despite the upward revision in the purchase amount, the terms and conditions of the auction, as well as the list of government securities to be purchased, will remain unchanged from the original announcement.
This move underscores the RBI’s proactive stance in managing systemic liquidity, aiming to support financial market stability and smooth functioning amid fluctuating economic conditions.