RBI conducts G-Secs purchase of ₹50,000 crore to inject liquidity, another tranche on Friday

Amidst rising geopolitical tensions and war in West Asia which will have far reaching consequences on India’s economy, the Reserve Bank of India (RBI), on Monday conducted Open Market Operations (OMO) purchase auctions of Government of India securities (G-Secs) of ₹50,000 crore in various maturities ranging from 6.01% with maturity on July 21, 2030 to 7.30% with date of maturity on June 19, 2053.

On Friday, the RBI had ‘on a review of the current liquidity and financial conditions’ decided to conduct OMO purchase auctions of G-Sec for an aggregate amount of ₹1,00,000 crore in two tranches of ₹50,000 crore each, to be held on March 9, 2026 and March 13, 2026.

OMOs are key money market policy tool used by RBI, the Central Bank or bankers to the Government, to regulate money supply or liquidity by buying or selling G-Sec. The latest move is to inject liquidity.

The OMO purchase is to offset liquidity constraints arising from advance tax outflows and to have sufficient funds for lending by banks.   

In December 2025 and January 2026 the RBI had conducted OMO purchases of ₹2,00,000 crore in four tranches of ₹50,000 crore each.

In May 2025 the RBI had conducted OMO purchases totaling ₹1,25,000 crore in various tranches to support growth.

On Monday the RBI also notified that the Government of India had bought back G-Secs worth ₹6,309 crore via switch auction conducted by it and issued bonds worth ₹6,431 crore.

The securities purchased by the government were part of the scheduled bonds scheduled to mature in the next financial year.

India rupee falls to record low before recovering, down 39 paise 

The Indian Rupee fell to record low of 92.36 against the U.S. Dollar on Monday owing to fears of a prolonged war in West Asia and on account of surging of crude oil prices over $110 a barrel.

With reported intervention by the RBI, the Indian rupee as per Clearing Corporation of India spot rate closed at 92.21 per U.S. Dollar as compared with its previous close of 91.82, down 39 paisa.  

Dilip Parmar, Research Analyst, HDFC Securities said, “ In line with broader weakness across Asian currencies, the Indian Rupee has depreciated against the U.S. Dollar as international crude oil prices surged past $100 per barrel, reclaiming levels not seen since 2022.”

“These soaring energy costs pose a significant threat to India’s trade deficit, GDP growth, and inflation, given the country’s high reliance on oil imports. Amidst heightening geopolitical uncertainty, the spot USDINR is expected to remain firm, with a resistance level near 93.00 and established support at 91.80,” he added.