RBI Buys Back Government Securities Worth Rs 12,604 Cr

Mumbai: The Reserve Bank of India (RBI) on Tuesday bought back government securities worth Rs 12,604 crore through an auction conducted as part of the government’s debt management operations.

The central bank received offers aggregating to Rs 16,959.07 crore from market participants and accepted bids worth Rs 12,604.07 crore, according to a notification.

The highest buyback was in 7.33 per cent GS 2026, where the RBI accepted Rs 8,960.69 crore worth of securities against offers totalling Rs 9,160.69 crore.

The RBI also bought back Rs 2,400.387 crore of 8.15 per cent GS 2026, Rs 893 crore of 5.74 per cent GS 2026 and Rs 350 crore of 8.24 per cent GS 2027.

The cut-off prices were fixed at Rs 100.48 for the 7.33 per cent GS 2026, Rs 100.10 for the 5.74 per cent GS 2026, Rs 100.86 for the 8.15 per cent GS 2026 and Rs 101.40 for the 8.24 per cent GS 2027.

The corresponding weighted average prices stood at Rs 100.47, Rs 100.10, Rs 100.86 and Rs 101.39, respectively.   The buyback auction is undertaken to retire government securities ahead of their maturity, helping to optimise the government’s redemption profile and manage public debt efficiently.

Additionally, it provides liquidity to the banking system.   Currently,  liquidity in the banking system is estimated to be in surplus of around Rs 1.01 lakh crore as on July 27, according to the RBI data.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)