RBI rectifies issue banks faced in allotment at OMO auction - dealers
This story was originally published at 19:59 IST on 22 January 2026
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--Dealers: Facing issues in allotment of offers at RBI's OMO auction
--Dealers: Some OMO offers placed below cut-off prices showing rejected by RBI
--Dealers: Flagged issue of OMO allotment with RBI, waiting for response
--Dealers: Allotment issue at OMO auction rectified on RBI's e-Kuber system
NEW DELHI – Some banks were facing issues in the allotment of successful offers at the Reserve Bank of India's open market operation to buy bonds, dealers said. Bank officials raised the issues with the RBI's Financial Markets Operation Department and the central bank rectified the issue around 1830 IST.
"Some of the offers that have been put even below the cut-off prices are showed as rejected," a dealer at a state-owned bank said. "While the settlement will only happen tomorrow (Friday), we need to show the transaction in our books today (Thursday) and so are waiting for the RBI's response."
The RBI accepted offers worth the full notified amount of INR 500 billion at the auction. There were no issues during the auction conducted at 0930-1030 IST, dealers said. The delay in the auction result to 1650 IST led to an extension in gilt market trading hours to 1730 IST from the usual 0900-1700 IST.
The problem was widespread but did not affect all successful bidders. Cut-off prices at the auction were lower than expected in an Informist poll, reducing the pool of banks affected by the issue. It was difficult to gauge what quantum of successful offers had wrongly shown as "rejected", dealers said.
"They (RBI) mentioned they are changing it in e-Kuber," a dealer at a private-sector bank said. The central bank said there would be no change in cut-off prices, and it soon uploaded a revised sheet where all the offers below the cut-off prices were accepted, dealers said. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Aaryan Khanna
Edited by Deepshikha Bhardwaj
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