RBI To Purchase ₹1 Lakh Crore Government Securities Through Open Market Operations To Manage Liquidity

The Reserve Bank of India (RBI) said on Friday that it will purchase Government of India securities worth Rs 1,00,000 crore through open market operations.

Open market operations refer to transactions in which the central bank buys or sells government securities in the market to influence liquidity in the banking system. When the RBI buys securities, it releases funds into the financial system.

The planned purchases will take place in two auctions of ₹50,000 crore each. These are scheduled for March 9 and March 13, 2026.

For the March 9 auction, the RBI has listed seven government securities that may be purchased. These include 6.01% GS 2030, 6.10% GS 2031, 7.18% GS 2033, 6.19% GS 2034, 6.33% GS 2035, 6.92% GS 2039 and 7.30% GS 2053.

The central bank will conduct the purchase through a multi-security auction using the multiple price method. Under this format, successful participants may receive securities at different prices depending on the bids they submit.

The RBI stated that it may decide how much to buy of each individual security. It may also accept bids for less than the announced amount, adjust the final purchase slightly because of rounding, or accept and reject bids either fully or partly without giving reasons.

Participants must submit bids electronically through the RBI's E-Kuber system between 9:30 am and 10:30 am on March 9, 2026. If the system fails, physical bids can be submitted to the Financial Markets Operations Department before 10:30 am.

Auction results will be announced the same day. Successful participants must ensure the securities are available in their Subsidiary General Ledger (SGL) accounts by 12 noon on March 10, 2026.

The RBI said the decision to conduct the purchase followed its review of current liquidity and financial conditions.