Conversion/Switch of Government of India Securities
Distilled Policy Brief
- The Government of India announced a securities conversion/switch auction through the Reserve Bank of India's e-Kuber platform for an aggregate amount of ₹30,000 crore.
- The auction follows a multiple-price based format where successful bids are accepted at their respective quoted prices, with settlement occurring on a T+1 basis.
- The switch transaction is conducted via the e-Kuber portal with a minimum bid size of ₹10,000 and multiples thereof, requiring the source security price to match the previous working day's FBIL closing price.
🎯 Prelims High-Yield Examination Points
Government securities (G-Sec) conversion/switch auctions are conducted through the RBI's e-Kuber platform using a multiple-price auction mechanism, settling on a T+1 basis with a minimum bid size of ₹10,000.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the significance of debt management operations like G-Sec switches by the government and RBI in managing redemption pressure, smoothing maturity profiles, and enhancing liquidity in the domestic debt market.
🎯 UPSC Prelims Practice Drill
With reference to the Government of India securities conversion/switch auction conducted through the Reserve Bank of India, consider the following statements: 1. The auction is conducted using a uniform-price based format where all successful bidders are awarded securities at a single cleared price. 2. The switch transaction is executed via the e-Kuber platform with a minimum bid size of ₹10,000 and multiples thereof. 3. The settlement of the switch auction takes place on a T+1 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 incorrect because the auction follows a multiple-price based format (successful bids are accepted at their respective quoted prices), not a uniform-price format. Statements 2 and 3 are correct; the minimum bid size is ₹10,000 (and multiples thereof) via the e-Kuber portal, and the settlement takes place on a T+1 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.