Auction of 91-Day, 182-Day and 364-Day Treasury Bills
Distilled Policy Brief
- The Reserve Bank of India announces the auction of 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 in India, and designated Foreign Central Banks can participate in the auction on a non-competitive basis.
- Individual retail investors can also participate on a non-competitive basis through the Retail Direct portal, with their allocation restricted to a maximum of 5 percent of the notified amount.
🎯 Prelims High-Yield Examination Points
Key features of Treasury Bills (T-Bills) in India, including eligible non-competitive bidders, retail investor limits, and the role of the E-Kuber platform.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the significance of retail participation in government debt markets and how platforms like RBI Retail Direct facilitate financial inclusion and market deepening.
🎯 UPSC Prelims Practice Drill
With reference to the auction of Government of India Treasury Bills (T-Bills) conducted by the Reserve Bank of India (RBI), consider the following statements: 1. The auction is conducted on the RBI's Core Banking Solution (E-Kuber system) using a price-based, multiple price method. 2. State Governments and Union Territories with legislature can participate in the auction on a non-competitive basis, with their allocation kept outside the notified amount. 3. Individual retail investors can bid on a non-competitive basis through the Retail Direct portal, with their allocation restricted to a maximum of 5 percent of the notified amount. 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
All three statements are correct. The RBI conducts the Treasury Bill auctions on its Core Banking Solution (E-Kuber system) using a price-based, multiple price method. State Governments and Union Territories with legislature are eligible to participate on a non-competitive basis outside the notified amount. Individual retail investors can also participate on a non-competitive basis through the Retail Direct portal, with their allocation capped at a maximum of 5 percent of 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.