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RBI absorbs nearly half of government's bond supply through OMO purchases

The Reserve Bank of India bought 47 percent of the Centre’s bond issuances in FY26 through Open Market Operations, injecting liquidity to ease pressure from heavy government borrowing and keep bond yields stable

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RBI buys 47 pc of FY26 government bonds to support liquidity. Representational Image

RBI buys 47 pc of FY26 government bonds to support liquidity. Representational Image

In order to support liquidity in the banking system, the Reserve Bank of India (RBI) has purchased government securities equivalent to 47 per cent of the Centre's total bond issuances so far in FY26, according to public data.

Data compiled by PTI from RBI showed that the Centre raised Rs 13,65,000 crore from April 4, 2025, to February 13 this year by issuing government securities as part of its gross borrowing programme. In parallel, the RBI conducted Open Market Operations (OMO) purchase auctions totalling Rs 6,39,203 crore, injecting durable liquidity into the banking system.

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