RBI · Reserve Bank of India ·

Auction of 91-Day, 182-Day and 364-Day Treasury Bills

Distilled Policy Brief

  • Non-competitive bidding is open to State Governments, Union Territories with legislature, eligible Provident Funds, designated Foreign Central Banks, and retail individual investors.
  • For retail individual investors, the non-competitive allocation is restricted to a maximum of 5 percent of the notified amount, and bids can be placed through the Retail Direct portal.

🎯 Prelims High-Yield Examination Points

Maturity periods of Treasury Bills (91, 182, and 364 days), non-competitive bidding eligibility, and the E-Kuber auction platform.

⚖️ Mains Analytical & Syllabus Linkages

Significance of democratizing government securities (G-Secs) for retail investors and its impact on domestic debt management.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the auction of Government of India Treasury Bills, consider the following statements regarding non-competitive bidding: 1. Non-competitive bidding is restricted exclusively to State Governments, Union Territories with legislature, and eligible Provident Funds. 2. Retail individual investors can participate in non-competitive bidding through the Retail Direct portal. 3. The non-competitive allocation for retail individual investors is 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
✓ Correct Option: [B] 2 and 3 only

Statement 1 is incorrect because non-competitive bidding is not restricted only to State Governments, UTs, and Provident Funds; it is also open to designated Foreign Central Banks and retail individual investors. Statements 2 and 3 are correct as retail individual investors can place bids through the Retail Direct portal under the non-competitive scheme, with their allocation restricted to a maximum of 5 percent of the notified amount.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 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.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Money Market Instruments: Indian Economy (e.g., Ramesh Singh) - Chapter on Financial Markets, distinguishing between short-term Treasury Bills (issued only by the Centre) and long-term Dated Securities.
Government Deficit Financing: NCERT Class 12 Macroeconomics - Government Budget and the Economy, focusing on how the government finances its fiscal deficit through market borrowings.