RBI announces OMO Sale of Government of India Securities
Distilled Policy Brief
- The Reserve Bank will conduct an OMO sale auction of Government of India securities for an aggregate amount of ₹25,000 crore on September 21, 2026.
- Eligible participants must submit bids electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) system, with physical bids permitted only during system failures.
🎯 Prelims High-Yield Examination Points
Open Market Operations (OMOs) are quantitative monetary policy tools used by the RBI to regulate durable liquidity through the direct sale or purchase of government securities.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the impact of Open Market Operation (OMO) sales by the Reserve Bank of India on systemic liquidity, bond yields, and monetary policy transmission.
🎯 UPSC Prelims Practice Drill
With reference to the Open Market Operations (OMO) sale of Government of India securities conducted by the Reserve Bank of India (RBI), consider the following statements: 1. Eligible participants are required to submit their bids exclusively in electronic format through the RBI's Core Banking Solution (E-Kuber) system under all circumstances, with no exceptions for physical bids. 2. The Reserve Bank reserves the right to accept or reject any or all bids either wholly or partially without assigning any reason. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is incorrect because while electronic submission via the E-Kuber system is mandatory, physical bids are permitted in the event of a system failure. Statement 2 is correct as the RBI explicitly reserves the right to accept or reject any or all bids either wholly or partially without assigning any reason during such OMO auctions.
🏛️ 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.