Important StoriesSitharaman’s LTCG, STT remarks lift market sentiment; rupee gains for third straight sessionUPI MDR rollout postponed until after Diwali; new date to be announcedIndia offers itself as a trusted partner to the world as global challenges have grown: ModiZoho says it cannot offer usual pay hikes to employees this year as AI disrupts costsNandan Nilekani proposes last-minute question papers to prevent exam leaksFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. RBI drains out ₹25,000 cr liquidity via OMO sale of G-Secs The banking system had a surplus liquidity of ₹3,35,901 crore as of October 12 By BL Mumbai Bureau Updated - October 13, 2026 at 08:48 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/rbi-drains-out-25000-cr-liquidity-via-omo-sale-of-g-secs/article71580485.eceCopy At the auction of six G-Secs, market participants offered to sell securities aggregating ₹55,518 crore against the notified amount of ₹25,000 crore | Photo Credit: ANI

The Reserve Bank of India (RBI) conducted an open market operation (OMO) sale of Government Securities (G-Secs) to absorb ₹25,000 crore from the banking system, which continues to remain in surplus.

The banking system had a surplus liquidity of ₹3,35,901 crore as of October 12, 2026 and could impede transmission of the recent repo rate hike into the financial markets.

The RBI is undertaking liquidity drain-out operations, including via variable rate reverse repo (VRRR) auctions and OMO sales of G-Secs, so that the overnight call money rate is aligned with the repo rate of 5.50 per cent.

At the auction of six G-Secs, with maturities ranging from 2030 to 2034, market participants offered to sell securities aggregating ₹55,518 crore against the notified amount of ₹25,000 crore. The RBI accepted the notified amount.

Meanwhile, at the auction of State Development Loans (SDLs) of 13 States, the RBI accepted bids aggregating ₹30,005 crore against the notified amount of ₹31,200 crore. Nuvama, in a report, said that the cut-offs on SDLs at the weekly auction were broadly along expected lines.

“The benchmark 10-year bond (6.94% Government Security/ GS 2036) opened 2 basis points (bps) lower at 7.37 per cent, tracking the decline in 10Y UST to 5.20 levels. 10Y GS touched 7.34 per cent ahead of OMO sales and the weekly SDL auction… 10Y point closed the day 2 bps lower at 7.37 per cent vs 7.39 per cent,” per the report.

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