RBI to conduct Rs 25,000 cr OMO sale auction of government securities on Oct 13

The Reserve Bank of India will conduct an open market operation auction on October 13, selling government securities worth Rs 25,000 crore. This move is aimed at absorbing excess liquidity in the banking sector, which currently stands at approximately Rs 3.88 lakh crore. The central bank will accept bids for six different securities with maturities ranging from 2030 to 2034. This operation could influence interest rates and have a bearing on the overall economy.

Why it matters

The RBI plans to auction government securities, which will absorb liquidity from the market. This operation is expected to reduce the amount of money available for lending, potentially increasing interest rates.

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