Auction of 91-Day, 182-Day and 364-Day Treasury Bills
Distilled Policy Brief
- The Reserve Bank of India conducts auctions for Government of India Treasury Bills using a price-based multiple price method on its Core Banking Solution (E-Kuber system).
- State Governments, Union Territories with legislature, eligible Provident Funds, designated Foreign Central Banks, and individual retail investors can participate in these auctions on a non-competitive basis.
- For retail investors, the non-competitive allocation is restricted to a maximum of 5 percent of the notified amount, with bids placeable through the Retail Direct portal.
🎯 Prelims High-Yield Examination Points
Key features of Treasury Bills (T-Bills), non-competitive bidding eligibility, and the RBI Retail Direct Scheme.
⚖️ Mains Analytical & Syllabus Linkages
Government debt management strategies, deepening retail participation in financial markets, and the role of the RBI in managing short-term sovereign borrowing.
🎯 UPSC Prelims Practice Drill
With reference to the auctions of Government of India Treasury Bills conducted by the Reserve Bank of India (RBI), consider the following statements: 1. The auctions are conducted using a price-based multiple price method on the RBI's Core Banking Solution (E-Kuber system). 2. Individual retail investors can participate in these auctions on a non-competitive basis through the Retail Direct portal, with allocations restricted to a maximum of 5 percent of the notified amount. 3. State Governments and eligible Provident Funds in India are barred from participating in Treasury Bill auctions on a non-competitive basis. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct because RBI conducts auctions for Government of India Treasury Bills using a price-based multiple price method on its E-Kuber system. Statement 2 is correct since retail investors can participate on a non-competitive basis through the Retail Direct portal with allocations restricted to a maximum of 5 percent of the notified amount. Statement 3 is incorrect because State Governments and eligible Provident Funds are explicitly permitted to participate on a non-competitive basis.
🏛️ 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.