Detailed Result: OMO Sale Auction held on Sep 28, 2026 and Settlement on Sep 29, 2026
Distilled Policy Brief
- The Reserve Bank of India conducted an Open Market Operation (OMO) sale auction absorbing ₹25,000 crore through government securities.
- Participant bids totaled ₹67,655 crore against the notified face value amount of ₹25,000 crore, reflecting robust liquidity demand.
- The auction spanned multiple government security tenors maturing between 2029 and 2032 with varying cut-off yields.
🎯 Prelims High-Yield Examination Points
RBI conducted an OMO sale auction of ₹25,000 crore involving various government securities (GS) spanning 2029 to 2032 maturities to manage system liquidity.
⚖️ Mains Analytical & Syllabus Linkages
Open Market Operations serve as a crucial quantitative monetary policy tool for the RBI to regulate money supply, influence bond yields, and manage liquidity in the banking system.
🎯 UPSC Prelims Practice Drill
With reference to the Open Market Operations (OMO) conducted by the Reserve Bank of India (RBI), consider the following statements regarding a recent OMO sale auction: 1. An OMO sale auction by the RBI leads to an absorption of liquidity from the banking system through government securities. 2. In the recent auction, the total bid amount received from participants was less than the notified face value amount set by the RBI. 3. The auction involved multiple government security tenors with varying cut-off yields. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
An OMO sale auction conducted by the RBI absorbs liquidity from the market, making statement 1 correct. Statement 2 is incorrect because participant bids totaled ₹67,655 crore, which was substantially higher than the notified face value amount of ₹25,000 crore. Statement 3 is correct as the auction spanned multiple government security tenors maturing between 2029 and 2032 with varying cut-off yields.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.