---
title: "OMO Purchase vs Sale Auctions: RBI Liquidity Tool"
description: "OMO Purchase and Sale Auctions are RBI transactions in government securities that manage durable rupee liquidity, crucial for banking stability."
url: "https://modeldiplomat.com/learn/glossary/open-market-purchase-vs-sale"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Open Market Operation purchase and sale auctions are central-bank transactions in government securities used to inject or absorb durable rupee liquidity from the banking system.
- How does an OMO auction differ from a repo operation?
- When does the RBI choose a purchase auction over a sale auction?
- What is the legal basis for the RBI conducting OMOs?
- Is OMO the same as quantitative easing?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Open Market Operation purchase and sale auctions are central-bank transactions in government securities used to inject or absorb durable rupee liquidity from the banking system.

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In April 2021 the RBI launched the Government Securities Acquisition Programme (G-SAP 1.0), committing to OMO purchases of ₹1 lakh crore in a single quarter to anchor yields amid heavy pandemic-era government borrowing.

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