RBI To Auction Government Bonds Worth Rs 4.73 Lakh Crore In January-March Quarter Of 2025

The Reserve Bank of India (RBI) has announced plans to auction government bonds worth Rs 4.73 lakh crore during the January-March quarter of 2025.

These auctions will involve the participation of State Governments and Union Territories (UTs).

The RBI also clarified that the actual amount of borrowings and the list of participating States/UTs would be disclosed via press releases two to three days prior to each auction.

These details will depend on the borrowing requirements of the State Governments/UTs, approval from the Government of India under Article 293(3) of the Constitution of India, and prevailing market conditions, according to the RBI.

The RBI assured stakeholders of a smooth borrowing process.

“RBI would endeavour to conduct the auctions in a non-disruptive manner, taking into account the market conditions and other relevant factors and distribute the borrowings evenly throughout the quarter,” it said.

The central bank said that it reserves the right to modify the auction dates and amounts in consultation with State Governments/UTs.

Government bonds, also known as Government Securities (G-Secs), are tradeable instruments issued by the Central or State Governments to acknowledge their debt obligations.

These securities can be short-term, such as treasury bills with maturities of less than one year, or long-term, referred to as dated securities with maturities of one year or more.

In India, the Central Government issues both treasury bills and dated securities, while State Governments issue only dated securities, known as State Development Loans (SDLs).

G-Secs are considered risk-free gilt-edged instruments due to their negligible risk of default.

Bonds, as debt instruments, enable entities, including governments, to raise funds for various projects and activities. Bondholders are creditors of the issuer and receive interest over a defined period.

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