Moneycontrol
Get App
Last Updated : May 22, 2020 10:56 PM IST | Source: PTI

RBI to auction G-Secs worth Rs 30,000 crore on May 29

The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21).

PTI
Representative Image
Representative Image

The government has announced to sell dated securities worth Rs 30,000 crore on May 29, the Reserve Bank of India (RBI) said in a statement on Friday. The auction is part of government's market borrowing programme.

Earlier this month, the government had decided to modify the indicative calendar for issuance of government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11-September 30, 2020) after reviewing its cash position and requirements.

The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21).

Close

The revision in borrowings was necessitated on account of the COVID-19 pandemic.

As per the RBI, the securities being offered for auction on May 29 are: 6.18 per cent GS 2024 (Rs 12,000 crore), New GS 2034 (Rs 11,000 crore) and 7.16 per cent GS 2050 (Rs 7,000 crore). The notified amount for the three securities total Rs 30,000 crore.

The Government of India will have the "option to retain additional subscription up to Rs 2,000 crore" each against any one or more of the securities, it added.

The RBI said the auction will be yield based for new security and price based for other securities, using multiple price method.

Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the RBI Core Banking Solution (E-Kuber) system on May 29, 2020, the central bank added.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.


Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!

First Published on May 22, 2020 10:55 pm
Sections
Follow us on