RBI to Sell Government Bonds Worth ₹4.73 Lakh Crore in Jan-March 2025

The Reserve Bank of India (RBI) has announced plans to sell government bonds worth ₹4.73 lakh crore during the January-March 2025 quarter. These bonds, aimed at State Governments and Union Territories, will be issued through weekly auctions, the schedule for which will include details of participating states and UTs. The auctions will be conducted based on market conditions, borrowing needs, and approval under Article 293(3) of the Constitution.
The central bank stated that it would strive to ensure non-disruptive auctions, distributing borrowings evenly throughout the quarter. Specific details of the auctions, including the participating States and Union Territories, will be shared two to three days prior to each auction. The RBI also reserves the right to modify the dates and amounts in consultation with State Governments and Union Territories.
Government bonds, also known as Government Securities (G-Secs), are tradeable debt instruments issued by the Central or State Governments. While the Central Government issues treasury bills and dated securities, State Governments issue only dated securities called State Development Loans (SDLs). These bonds are considered risk-free and are used by governments to finance projects and activities.
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