RBI to Purchase Government Bonds of Worth Rs 40,000 crore

The Reserve Bank of India (RBI) says that it will purchase government bonds of worth Rs 40,000 crore on April 17, 2025, by using open market operation (OMO). RBI says the reason behind making this move is to manage emergency liquidity conditions in the financial system. These bonds will mature between 2028 and 2039. This bond purchase is in addition to the already announced Rs. 80,000 crore worth of government bonds on April 1, 2025.

In the Open Market Operations (OMO) auction held on April 3, 2025, financial institutions offered Rs. 80,820 crore worth of bonds that will mature between 2029 and 2039. The April 8 auction saw offers of Rs. 70,144 crore for bonds maturing between 2032 and 2039. These auctions are being done in four equal parts of Rs. 20,000 crore each on April 3, 8, 22, and 29, 2025.

These bond purchases are part of the RBI’s efforts to add money to the financial system. In March, the RBI had already bought government bonds worth Rs. 1 lakh crore, split into two rounds of Rs. 50,000 crore each. It also carried out a $10 billion dollar-rupee swap for a period of 36 months to help manage liquidity.