RBI · Government of India ·

Buyback of Government of India Dated Securities

Distilled Policy Brief

  • The Government of India announced a buyback of its dated securities through an auction for an aggregate amount of ₹30,000 crore.
  • The auction utilizes the multiple price method and is conducted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

🎯 Prelims High-Yield Examination Points

Government of India dated securities buyback auctions are conducted electronically through the RBI's E-Kuber system using the multiple price method.

⚖️ Mains Analytical & Syllabus Linkages

Analyze the implications of government securities buyback operations on fiscal management, government debt consolidation, and liquidity management in the economy.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the recent buyback of Government of India Dated Securities, consider the following statements: 1. The buyback auction is conducted electronically on the Reserve Bank of India's Core Banking Solution (E-Kuber) system. 2. The auction for the securities strictly follows a uniform price method rather than a multiple price method. Which of the statements given above is/are correct?

  • [A] 1 only
  • [B] 2 only
  • [C] Both 1 and 2
  • [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [A] 1 only

Statement 1 is correct because the offers for the Government of India dated securities buyback auction are required to be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Statement 2 is incorrect because the auction utilizes the multiple price method, not the uniform price method.

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