The Reserve Bank of India will sell 1 trillion rupees ($10.5 billion) of government bonds through open-market operations in three September auctions, its first net bond sale through OMOs since September 2024. The RBI will sell 500 billion rupees on September 17 and 250 billion rupees each on September 21 and September 28 to absorb surplus liquidity estimated at 10.25 trillion to 11 trillion rupees. The excess cash followed a foreign-exchange mobilization scheme that enabled Indian banks to raise $127 billion and helped lift the RBI's reserves to unprecedented levels. Overnight rates have fallen below the monetary policy corridor floor, while the benchmark 10-year government bond yield rose to 7.035% after the announcement. The RBI also plans to auction 240 billion rupees of Treasury bills on September 16 and has said it can use foreign-exchange swaps and additional bond sales if needed. Its government-securities holdings stand at about 23 trillion rupees, providing capacity for further liquidity operations.