RBI sells 25,000 cr government bonds to absorb bank liquidity
The Reserve Bank of India just wrapped up its second big sale of government bonds this month, offloading ₹25,000 crore worth to help absorb surplus money floating around in banks.
The demand was massive: investors offered over three times what was on the table.
This is all about keeping the banking system balanced and making sure too much cash doesn't mess with the economy.
RBI sale part of OMO series
Most of the funds went into long-term government securities like 6.10% GS 2031 and 7.95% GS 2032, while the 8.28% GS 2027 didn't get any takers at all.
This open market operation (OMO) is part of a series: RBI already did a ₹50,000 crore sale earlier and has another lined up soon.
All these moves are basically RBI's way of keeping things steady so that excess money doesn't cause problems for growth or stability.