Auction of 91-Day, 182-Day and 364-Day Treasury Bills
Distilled Policy Brief
- The auction will use a multiple‑price method; if the electronic system fails, physical bids may be submitted to the Public Debt Office using the prescribed form downloadable from the RBI website.
🎯 Prelims High-Yield Examination Points
Treasury Bill auctions illustrate India's debt‑management strategy and the RBI's role in market operations.
⚖️ Mains Analytical & Syllabus Linkages
Analyse the significance of Treasury Bill auctions for fiscal management and assess the impact of allowing retail investors up to 5 % participation.
🎯 UPSC Prelims Practice Drill
According to the RBI’s announcement for the auction of 91‑Day, 182‑Day and 364‑Day Treasury Bills, which of the following statements is correct?
- [A] The auction will use a single‑price method and bids must be submitted electronically only.
- [B] Physical bids will be accepted only if the electronic system fails, and must be submitted to the Public Debt Office in the prescribed form.
- [C] Retail investors are allowed to participate on a competitive basis with a maximum allocation of 10% of the notified amount.
- [D] Payment by successful bidders is due on the same day as the auction.
▶ Reveal Official Answer & Analytical Explanation
The RBI announcement specifies that physical bids are accepted only in the event of an electronic system failure, and such bids must be submitted to the Public Debt Office in the prescribed form. The other options contradict the stated auction method, retail investor allocation limits, or payment schedule.
🏛️ 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.