
{"id":16641,"date":"2026-10-19T18:14:08","date_gmt":"2026-10-19T12:44:08","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=16641"},"modified":"2026-10-17T18:16:17","modified_gmt":"2026-10-17T12:46:17","slug":"rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/","title":{"rendered":"RBI Sells \u20b925,000 Crore of Bonds, Tightens CRR Rules to Drain Excess Bank Liquidity"},"content":{"rendered":"<div class=\"gpi-custom-widget-box\" style=\"border-left-color: #0066cc; background-color: #f0f7ff;\">\n<div class=\"gpi-custom-widget-title\" style=\"color: #0066cc;\">\ud83d\udcdd Quick Summary:<\/div>\n<h2 class=\"gpi-custom-widget-h2-content\"><span class=\"ez-toc-section\" id=\"The_RBI_sold_the_full_%E2%82%B925000_crore_of_bonds_on_October_13_at_cut-off_yields_of_714%E2%80%93739_From_October_16_banks_must_hold_99_of_required_cash_reserves_daily_up_from_90_as_this_drains_excess_liquidity\"><\/span>The RBI sold the full \u20b925,000 crore of bonds on October 13 at cut-off yields of 7.14%\u20137.39%. From October 16, banks must hold 99% of required cash reserves daily, up from 90%, as this drains excess liquidity.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n\n\n<p>The Reserve Bank of India (RBI) has stepped up its efforts to pull surplus cash out of the banking system. On October 13, it sold the full 250 billion rupees ($2.6 billion) of bonds it had offered across six securities. It had announced on October 9 that banks must also hold more of their mandated cash reserves with it each day.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#The_RBI_sold_the_full_%E2%82%B925000_crore_of_bonds_on_October_13_at_cut-off_yields_of_714%E2%80%93739_From_October_16_banks_must_hold_99_of_required_cash_reserves_daily_up_from_90_as_this_drains_excess_liquidity\" >The RBI sold the full \u20b925,000 crore of bonds on October 13 at cut-off yields of 7.14%\u20137.39%. From October 16, banks must hold 99% of required cash reserves daily, up from 90%, as this drains excess liquidity.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#RBI_OMO_Auction_Result_Full_%E2%82%B925000_Crore_Sold\" >RBI OMO Auction Result: Full \u20b925,000 Crore Sold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#Stricter_Daily_CRR_Maintenance_From_October_16\" >Stricter Daily CRR Maintenance From October 16<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#Why_the_RBI_Is_Draining_Liquidity\" >Why the RBI Is Draining Liquidity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#What_It_Means_for_Banks_Bond_Yields_and_Borrowers\" >What It Means for Banks, Bond Yields, and Borrowers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#Outlook_More_Liquidity_Tightening_Likely\" >Outlook: More Liquidity Tightening Likely<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/#Disclaimer\" >Disclaimer<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RBI_OMO_Auction_Result_Full_%E2%82%B925000_Crore_Sold\"><\/span><strong>RBI OMO Auction Result: Full \u20b925,000 Crore Sold<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In an open market operation (OMO), the central bank sells government securities to banks and other participants, absorbing cash from the system. The RBI accepted bids for the entire notified amount. Cut-off yields rose with maturity, from 7.1428% on the 2030 bond to 7.3947% on the 7.18% 2033 bond. Two securities, the 7.18% GS 2033 and the 6.10% GS 2031, accounted for about 71% of the total. No bids were accepted for the 7.10% GS 2034. Detailed results, including total bids received, are yet to be released.<\/p>\n\n\n\n<p><strong>Auction Result at a Glance<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"pcrstb-wrap\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Security<\/strong><\/td><td><strong>Accepted (\u20b9, crore)<\/strong><\/td><td><strong>Cut-off yield (%)<\/strong><\/td><td><strong>Cut-off price (\u20b9)<\/strong><\/td><\/tr><tr><td>7.88% GS 2030<\/td><td>2,820<\/td><td>7.1428<\/td><td>102.20<\/td><\/tr><tr><td>6.10% GS 2031<\/td><td>8,430<\/td><td>7.2236<\/td><td>95.54<\/td><\/tr><tr><td>7.95% GS 2032<\/td><td>1,600<\/td><td>7.2659<\/td><td>103.21<\/td><\/tr><tr><td>7.26% GS 2033<\/td><td>2,735<\/td><td>7.3413<\/td><td>99.58<\/td><\/tr><tr><td>7.18% GS 2033<\/td><td>9,415<\/td><td>7.3947<\/td><td>98.85<\/td><\/tr><tr><td>7.10% GS 2034<\/td><td>Nil<\/td><td>\u2013<\/td><td>\u2013<\/td><\/tr><tr><td><strong>Total<\/strong><\/td><td><strong>25,000<\/strong><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/\" aria-label=\"RBI Sells \u20b925,000 Crore of Bonds, Tightens CRR Rules to Drain Excess Bank Liquidity\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"RBI Sells \u20b925,000 Crore of Bonds\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17181515\/RBI-Sells-%E2%82%B925000-Crore-of-Bonds.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/rbi-sells-25000-crore-of-bonds-tightens-crr-rules-to-drain-excess-bank-liquidity\/\">RBI Sells \u20b925,000 Crore of Bonds, Tightens CRR Rules to Drain Excess Bank Liquidity<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/adani-airport-holdings-ncds-credit-ratings-yield-spreads-and-balance-sheet-analysis\/\" aria-label=\"Adani Airport Holdings NCDs: Credit Ratings, Yield Spreads, and Balance Sheet Analysis\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"Adani Airport Holdings NCDs\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17183107\/Adani-Airport-Holdings-NCDs.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/adani-airport-holdings-ncds-credit-ratings-yield-spreads-and-balance-sheet-analysis\/\">Adani Airport Holdings NCDs: Credit Ratings, Yield Spreads, and Balance Sheet Analysis<\/a><\/li>\n<li><div class=\"wp-block-latest-posts__featured-image aligncenter\"><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/beyond-mutual-funds-the-beginners-guide-to-sips-in-bonds\/\" aria-label=\"Beyond Mutual Funds: The Beginner\u2019s Guide to SIPs in Bonds\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds-1024x576.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"Beyond Mutual Funds\" style=\"\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds-1024x576.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds-300x169.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds-768x432.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds-1536x864.jpg 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2026\/10\/17180941\/Beyond-Mutual-Funds.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/goldenpi.com\/blog\/bond-news\/beyond-mutual-funds-the-beginners-guide-to-sips-in-bonds\/\">Beyond Mutual Funds: The Beginner\u2019s Guide to SIPs in Bonds<\/a><\/li>\n<\/ul>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stricter_Daily_CRR_Maintenance_From_October_16\"><\/span><strong>Stricter Daily CRR Maintenance From October 16<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The second measure targets how banks manage their reserves. Lenders must keep at least 99% of their required cash reserves with the RBI every day during a fortnight, up from 90% at present. The change takes effect on October 16. Because the rule is framed as 99% of the prescribed cash reserve ratio (CRR), the change is to daily maintenance rather than the ratio itself. That leaves banks less room to run low balances on some days.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_the_RBI_Is_Draining_Liquidity\"><\/span><strong>Why the RBI Is Draining Liquidity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Surplus liquidity weakens the effect of policy rate changes. The move follows the RBI\u2019s first key policy rate hike in almost four years, and the aim is to ensure that the hike feeds through to lending and deposit rates. Excess liquidity stood at around \u20b93.88 lakh crore earlier in October. It is not the first such step: the RBI also sold \u20b925,000 crore of bonds on September 28.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_It_Means_for_Banks_Bond_Yields_and_Borrowers\"><\/span><strong>What It Means for Banks, Bond Yields, and Borrowers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bond yields:<\/strong> Investors often demand higher yields to absorb a sudden increase in government securities supply, and less free cash at banks further dampens demand.<\/li>\n\n\n\n<li><strong>Money market rates:<\/strong> Overnight call money rates have already risen to 5.43%.<\/li>\n\n\n\n<li><strong>Bank funding:<\/strong> Lenders will have less idle cash and may lean more on the central bank\u2019s policy rates.<\/li>\n\n\n\n<li><strong>Borrowers and depositors:<\/strong> Tighter liquidity could lift borrowing costs over time. It may also improve deposit rates as banks compete for funds.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Outlook_More_Liquidity_Tightening_Likely\"><\/span><strong>Outlook: More Liquidity Tightening Likely<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The RBI is using a mix of tools rather than one blunt instrument. Repeated OMO sales, combined with a stricter CRR maintenance rule, show a central bank intent on aligning market rates with its policy stance. The detailed results will show how strong demand was, and banks\u2019 reserve management after October 16 will show how tight conditions are becoming.<\/p>\n\n\n<div class=\"gpi-custom-widget-box\" style=\"border-left-color: #0066cc; background-color: #f0f7ff;\">\n<div class=\"gpi-custom-widget-title\" style=\"color: #0066cc;\">Ready to Invest?<\/div>\n<div class=\"gpi-custom-widget-content\">\n<p>Visit <a href=\"https:\/\/goldenpi.com\/\">GoldenPi<\/a> to explore current bond options. Compare yields, ratings, and tenures in one place and invest online with as little as \u20b930,000.<\/p>\n<\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disclaimer\"><\/span>Disclaimer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities\/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and\/or default in payment. Read all the offer-related documents carefully. This blog\/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products\/services of\/on GoldenPi or any product\/services of its third-party client(s). For a detailed calculation of YTM, visit our website.&nbsp;<a href=\"https:\/\/delivery.goldenpi.com\/XPRBSN?id=162365=ch0GCFVXBVBUH1QDUlZXUlgBVgNSUwJVWgQGDFJQAVsEUwRfBldSBFVUAglRBFJSAA0ZBgxfQFBbERxBFSNTV10FU1cTDBgFDg5OAFIKVVFQBlZTVwQBBgFSAg0aC0BMQRIMFkwBUwoIFVdDHBwCCw1QAAsTWBpSVwgebDYxdmt\/Xl9dHxMF&amp;fl=WRVCSRBfGUkETltfVwNLAxVbCQwNWhpYVkpFGwMOBRcEWQMNUEoHSQJaV1BQAQQHTAZXA1IcAAMOBBxWB1IMFQUEVQxXXAEFBVQEUkpTVlMCUFEHU1JVAwhUAFECAQZaVFEADVAAVQBXVFRUUw==\" target=\"_blank\" rel=\"noreferrer noopener\">T&amp;C\u2019s Apply<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udcdd Quick Summary: The RBI sold the full \u20b925,000 crore of bonds on October 13 at cut-off yields of 7.14%\u20137.39%. From October&hellip;<\/p>\n","protected":false},"author":16,"featured_media":16660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[25],"tags":[],"class_list":["post-16641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>RBI Sells \u20b925,000 Crore of Bonds, Tightens CRR Rules to Drain Excess Bank Liquidity<\/title>\n<meta name=\"description\" content=\"RBI\u2019s \u20b925,000 crore bond sale and tighter CRR rules aim to absorb excess banking liquidity. 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