Auction Rooms And FX Rooms: RBI Promises Policy-Synced Liquidity, Rupee Stability And A Reset Of Non-Competitive G-Sec Bids

Jyoti Rathi - Kolkata Bureau May 29, 2026 1,250 Views

The Reserve Bank of India has flagged a sharp rise in rupee-based trade invoicing and promised a fresh look at how smaller investors access government securities. In its latest communication, the central bank outlined plans to review non-competitive bidding schemes in G-secs, T-bills and state loans, even as INR invoicing for exports and imports continues to gain traction.

RBI is trying to do two things at once: deepen the domestic government securities market and quietly internationalise the rupee. The latest numbers show meaningful, broad-based progress on INR invoicing since 2022, while the central bank reiterates that liquidity and forex operations will stay firmly aligned with its policy stance.

Reviewing Market Access In G-Secs

RBI will undertake a comprehensive review of existing schemes for non-competitive bidding in government securities, Treasury bills and state government securities. The move aims to make participation smoother and more inclusive for smaller institutions and retail investors, improving price discovery and market liquidity in sovereign paper.

Rupee Invoicing Gains Momentum

In 2025-26, trade invoicing and settlement in rupees grew 6.5 percent for export invoicing and 9.5 percent for import invoicing, signalling gradual but steady acceptance of INR in cross-border trade. Between August 2022 and July 2025, imports invoiced in INR recorded compound annual growth of 20.9 percent, while exports invoiced in INR grew at 12.7 percent, reflecting deeper usage by both Indian firms and their overseas counterparties.

Liquidity And Forex Policy Signals

RBI reiterated that its liquidity operations will remain in sync with its overall policy stance, ensuring that money market conditions are consistent with its inflation and growth objectives. On the forex side, the central bank said its operations will be guided by the goal of ensuring orderly movements in the rupee exchange rate, rather than targeting any specific level, even as INR-based invoicing and settlement has seen a considerable pickup since July 2022.

Rupee Trade And G-Sec Market Highlights

RBI to review non-competitive bidding schemes in G-secs, T-bills and state loans
INR-based trade invoicing grew 6.5 percent for exports and 9.5 percent for imports in 2025-26
Imports invoiced in INR grew at 20.9 percent CAGR, exports at 12.7 percent between August 2022 and July 2025
Liquidity operations to align with policy stance, forex actions to focus on orderly INR moves
RBI notes considerable pick up in rupee-based invoicing and settlement since July 2022