RBI to Auction Government Cash Management Bills Every - TopicsExpress



          

RBI to Auction Government Cash Management Bills Every Monday : The RBI took another step to suck out excess liquidity from the banking system and rein in rupee volatility. Yesterday Reserve Bank announced that it will sell government bonds worth Rs 22,000 crore every Monday to check volatility in the forex market. The measure is a part of a continuing effort to arrest the slide in the rupee, which hit a record intra-day low of Rs 61.80 against the dollar on 7.8.18. RBI will auction Government of India Cash Management Bills for a notified amount of Rs 22,000 crore once every week on Mondays. These bills are short-tenure debt instruments primarily issued by the government to bridge temporary cash flow mismatches. However, in this case, they are being used as a tool to manage liquidity in the system.
Posted on: Sat, 21 Sep 2013 05:06:00 +0000

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