RBI to auction up to ₹25,000cr government bonds October 13
Business
The Reserve Bank of India (RBI) is set to hold a big auction on October 13, selling government bonds worth up to ₹25,000 crore.
It is offering six types of bonds that mature between 2030 and 2034, but RBI might not sell the full amount. It depends on the bids it gets.
RBI selling bonds to absorb ₹3.88Lcr
Right now, banks have way more cash than usual, about ₹3.88 lakh crore extra as of October 8. This surplus comes from things like foreign currency deposits and recent government payouts for salaries and pensions.
By selling these bonds, RBI hopes to soak up some of that extra money and keep interest rates steady, just as RBI Governor Sanjay Malhotra has been emphasizing lately.