The Reserve Bank of India bought bonds worth ₹400 billion on Thursday, February 13, after the announced of ₹200 billion initially.
“The increase in the quantum was largely expected after a similar action this week,” VRC Reddy, treasury head at Karur Vysya Bank told the news agency. “We would need OMO purchases of more ₹1 trillion till the end of this financial year.”
RBI has also included the benchmark bond of 6.79 per cent, 2034, for this debt purchase. The central bank also bought nearly ₹50 billion of the bond in its first purchase in January 2025, reported the news agency.
Liquidity Infusion
The Reserve Bank of India (RBI) has infused around ₹2.68 trillion into the nation’s banking system in the last one-month period through a combination of OMO purchases, secondary market debt purchases, dollar/rupee swaps and longer duration variable rate repo auctions, reported the news agency.
The central bank is also providing funds through daily overnight repos and adjusting the quantum of funds based on the system’s needs. Close to two-thirds of these reports have not been fully subscribed, which indicates that RBI has been offering funds generally in line with or above market requirements, as per the news report.
RBI has also announced a four-day variable rate repo auction for ₹1 trillion which is set to take place on Monday, February 17. The payment of Goods and Service Taxes (GST) will take place around February 20, where traders estimate that the outflows will be in the range of ₹1.6 to 2 trillion.
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 will inject a $16 billion liquidity boost into the banking system next week amid tax outflows. RBI has infused around ₹2.68 trillion into the system in the last one-month period.){kind=link}