The last time the RBI rejected all the bids at the T-Bill auction was in February 2025
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ALTAF HUSSAIN
The Reserve Bank of India (RBI) rejected all bids it received at the auction of Treasury Bills aggregating ₹35,000 crore on Wednesday in the backdrop of the Government receiving inflows by way of GST and advance tax collections and market players placing bids at relatively higher yields.
Market experts said the last time the RBI rejected all the bids at the T-Bill auction was in February 2025.
The RBI, on behalf of the Government, conducted auction of 91-day T-Bill (for raising ₹15,000 crore), 182-day T-Bill (₹12,000 crore) and 364-day T-Bill (₹8,000 crore).
Good Liquidity
Under the competitive bidding, the central bank received 79 bids aggregating ₹21,698 crore at the auction of the 91-day T-Bill; 104 bids aggregating ₹28,776 crore at the auction of the 182-day T-Bill; and 90 bids aggregating ₹15,675 crore at the auction of the 364-day T-Bill.
The RBI rejected all the bids as the Government has sufficient liquidity following mid-month tax collections and bidders, especially banks, demanding higher yields in view of lower surplus in the banking system.
V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, observed that the bids at the T-Bill auctions may have been rejected as the government is having good liquidity on account of tax collections and the market players placing bids at higher yields due to lower liquidity surplus.
There was a liquidity surplus of about ₹2.5-3.0 lakh crore in the banking system in the beginning of March 2026 and the same has come down to about ₹61,600 crore as on March 24,.
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Published on March 25, 2026
