RBI advances OMO schedule; to inject ₹1 lakh crore in two tranches on Jan 29 and Feb 5
The RBI has rescheduled open market operation (OMO) purchase auctions to January 29 and February 5 to infuse durable liquidity worth ₹1 lakh crore. The move is intended to ease liquidity conditions by buying government securities via the RBI’s e-Kuber system, with results announced the same day as the auctions.
The Reserve Bank of India has advanced its timetable for open market operation (OMO) purchases, bringing forward auctions intended to inject ₹1 lakh crore of durable liquidity into the banking system. Moneycontrol reported that the central bank has rescheduled the purchase dates to January 29 and February 5, 2026, from an earlier plan that placed the auctions later in February.
Under the plan, the RBI will infuse the total amount in two tranches of ₹50,000 crore each by purchasing government securities. The first auction is scheduled for January 29 and will take place on the RBI’s Core Banking Solution (e-Kuber) platform within a defined time window, as per the report.
OMO purchases are among the RBI’s primary tools to address system-level liquidity conditions. By buying government bonds from the market, the central bank injects rupee liquidity into banks, potentially easing short-term funding stress and supporting smoother transmission of monetary policy.
Moneycontrol said the RBI’s announcement follows a review of liquidity and financial conditions, and comes as markets track fluctuating liquidity levels and the trajectory of interest rates. The report also noted that the RBI listed specific government securities that would be purchased in the auction, with the results to be announced on the same day.
In practical terms, an earlier-than-planned injection can reduce pressure on money-market rates and support credit conditions if banks face tighter liquidity buffers. It can also influence government bond yields by raising demand for dated securities, though broader yield direction still depends on inflation expectations, fiscal signals and global rate cues.
The move adds to a series of liquidity-management steps taken in recent months as the RBI balances multiple objectives: keeping markets orderly, ensuring adequate banking-system liquidity, and maintaining macro stability. For borrowers and lenders, the immediate impact is typically felt through interbank funding costs and the availability of credit in the short to medium term.
With the first tranche due on January 29, markets will watch auction participation and post-auction liquidity indicators for clues on whether further operations may be needed. The RBI has repeatedly said it will monitor conditions and act as necessary, so the pace of subsequent interventions will depend on how liquidity evolves through the budget season and beyond.