Home / World News / RBI's OMO auction sees strong demand, but experts say job still half done

RBI's OMO auction sees strong demand, but experts say job still half done

Net liquidity fell into deficit after seven weeks; net liquidity in the banking system was in a deficit of ₹68,586 crore on Wednesday

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1 min read Last Updated : Dec 19 2025 | 11:30 AM IST

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The Reserve Bank of India (RBI) on Thursday received bids worth ₹1.39 trillion at the open market operations (OMO) purchase auction, against the notified amount of ₹50,000 crore.

Market participants said that the cut-off yield was set along the expected lines.

The central bank has infused ₹1.45 trillion durable liquidity so far in December through OMO purchases and forex buy-sell swaps.

However, experts said that additional OMOs purchases might be needed to support smoother monetary transmission, help correct the excessively steep yield curve, and ease demand-supply pressures in the government bond market.

Meanwhile, the net liquidity in the banking system was in a deficit of ₹68,586 crore on Wednesday, according to the latest data by the RBI. Net liquidity fell into deficit mode after seven weeks.