The Reserve bank of India rejected all bids at a treasury bill auction on Wednesday, its first such move in 13 months, in a step expected to support banking system liquidity ahead of the financial year-end on March 31.
The government had planned to raise ₹35,000 crore through the sale of 91-day, 182-day and 364-day treasury bills, but the Reserve Bank of India did not accept any bids.
* In February 2025, the RBI had canceled only 91-day and 182-day t-bills, signalling greater comfort with the government’s cash balances
* The latest move is expected boost the liquidity surplus by ₹35000 crore
* Inflows from maturing t-bills are due on Friday, while there will not be any outflow
* “The t-bill auction cancellation has been welcomed by the market,” said Rajeev Pawar, treasury head at Ujjivan Small Finance Bank
* “System liquidity is a bit low, and given that the government has just received tax inflows it does not need additional funds immediately,” Pawar added
* Traders said bids could have been at higher levels, and that the RBI did not want to spook the market around the year-end
* Focus is now on the t-bill borrowing calendar for April-June, which is likely to be published by Monday evening
* Traders anticipate a spike in borrowing via t-bills for the first quarter of the financial year 2027
Published on March 25, 2026
