RBI to Conduct ₹40,000 Crore OMO on April 17: All You Need to Know

On April 11, 2025, the Reserve Bank of India (RBI) announced that it has decided to implement an Open Market Operation (OMO) purchase auction of Government of India securities on a review of current and evolving liquidity conditions. The schedule OMO of worth ₹40,000 crore is to be held on April 17, 2025.

RBI further stated in the release that the said auction is in addition to the previously announced ₹80,000 crore OMO programme, which is scheduled to be conducted in 4 tranches of ₹20,000 crore each on April 3, April 8, April 22, and April 29.

VRR Auction

In a separate move, the RBI announced its plan to conduct a 43-day variable rate repo (VRR) auction on the same day, aiming to inject ₹1.5 trillion into the banking system. So far, the RBI has infused ₹2.9 trillion through open market operations (OMOs) and an additional ₹2 trillion via long-term VRR auctions. As of Thursday, April 10, 2025, the net liquidity in the banking system stood at a surplus of ₹1.8 trillion.

Indian Banking Saw Liquidity Surplus

The Reserve Bank of India (RBI) concluded fiscal year 2025 (FY25) with its most substantial open market operations in the past 4 years, highlighting its proactive approach to liquidity management. By the end of March 2025, the Indian banking system recorded a liquidity surplus of ₹89,400 crore, a sharp reversal from the ₹3.3 lakh crore deficit seen in January. This notable shift underscores the RBI’s assertive measures to stabilize the financial system.

The central bank’s liquidity support has become especially important amid an uneven economic recovery in India, marked by persistent inflationary pressures, a slowdown in industrial production, and global economic headwinds dampening business confidence. Adding to the uncertainty, geopolitical tensions—particularly the ongoing Russia- Ukraine conflict—continue to roil global markets, which in turn has impacted India’s financial landscape.

Conclusion

The Reserve Bank of India’s recent actions—including a series of large-scale OMO purchases and VRR auctions—highlight its continued commitment to actively managing systemic liquidity and supporting financial stability amid evolving economic challenges

Also Read: RBI Announces Fresh Open Market Operations of ₹80,000 Crore to Boost Liquidity

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