RBI rejects 224 T-bill bids 1st time since March 2025
For the first time since March 2025, the Reserve Bank of India (RBI) rejected every single bid (224 in total) in its latest Treasury bill auctions.
The goal was to raise ₹23,000 crore, but bidders wanted higher interest rates than RBI was comfortable with.
Thanks to a hefty government cash balance (about ₹5.3 lakh crore), the RBI could afford to walk away.
Rejection reflects RBI cautious stance
This decision fits with the RBI's cautious approach: it doesn't want to signal rising short-term rates unless absolutely necessary.
Even though there are money pressures like GST payments and funds getting blocked primarily in the Jio Platforms IPO, the government isn't desperate for cash right now.
Investors showed plenty of interest across different T-bill types (91-day, 182-day, and 364-day), but RBI stayed firm on keeping borrowing costs under control.