Auction of 91-Day, 182-Day and 364-Day Treasury Bills
Distilled Policy Brief
- The Reserve Bank of India announced the auction of Government of India Treasury Bills using the multiple price auction method.
- Non-competitive bidding is available for eligible entities and retail investors, with retail allocation restricted to a maximum of 5 percent of the notified amount.
- Electronic bids must be submitted through RBI's Core Banking Solution (E-Kuber system) or the RBI Retail Direct portal.
🎯 Prelims High-Yield Examination Points
Treasury Bills are short-term money market instruments issued by the RBI on behalf of the Government, with retail non-competitive allocation capped at 5 percent.
⚖️ Mains Analytical & Syllabus Linkages
Evaluates the significance of broadening retail participation in sovereign debt markets via initiatives like RBI Retail Direct.
🎯 UPSC Prelims Practice Drill
With reference to the auction of Government of India Treasury Bills (T-Bills) by the Reserve Bank of India, consider the following statements: 1. Individual retail investors can participate in T-Bill auctions on a non-competitive basis, with allocation restricted to a maximum of 5 percent of the notified amount. 2. Non-competitive allocations for State Governments and designated Foreign Central Banks are included within the total notified amount of the auction. 3. The auctions are price-based and conducted using the multiple price auction method through RBI's Core Banking Solution (E-Kuber). Which of the statements given above is/are correct?
- [A] 1 and 2 only
- [B] 1 and 3 only
- [C] 2 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statements 1 and 3 are correct: Individual retail investors are allowed non-competitive participation restricted to a maximum of 5% of the notified amount, and auctions are price-based using the multiple price method on RBI's E-Kuber system. Statement 2 is incorrect because the allocation for State Governments, Foreign Central Banks, and other specified institutional entities participating on a non-competitive basis is kept outside the notified amount.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.