The government is set to borrow Rs 3.94 lakh crore from the market via treasury bills (T-bills), the Reserve Bank of India (RBI) said in a press release. On Friday, the central bank released the calendar for the auction of T-bills.
The central government is set to borrow Rs 1.68 lakh crore via 91-day T-bills, Rs 1.28 lakh crore via 182-day T-bills and Rs 98,000 crore via 364-day T-bills, the central bank said in the press release.
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“The RBI, in consultation with the central government, will have the flexibility to modify the notified amount and timing for auction of T-Bills depending upon the Centre’s requirements, evolving market conditions and other relevant factors, after giving due notice to the market,” the RBI said.
Further, it said, “The calendar is subject to change, if circumstances so warrant, including for reasons such as intervening holidays. Such changes, if any, will be communicated through press releases.”
The overall borrowings from the T-bills have gone up on quarterly basis. In October-December, the government was set to raise Rs 2.47 lakh crore via T-bills. The supply of T-bills across tenures have risen sharply for January-March quarter.
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Due to the tight liquidity conditions, the central government has increased the supply of T-bills, said dealers. T-bills are short-term debt instruments issued by the government to meet its short-term borrowing needs. These bills are highly liquid and considered a safe investment since they are backed by the government. T-Bills are issued with three different maturity periods: 91 days, 182 days and 364 days.
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