RBI Announces Rs 20,000 Crore Government Securities Buyback on July 28

Mumbai: The Reserve Bank of India on Thursday announced a buyback of government securities worth Rs 20,000 crore on July 28, according to a notification.

The auction will take place on July 28, between 10:30 AM and 11:30 AM on the Reserve Bank of India Core Banking Solution, E-Kuber, the RBI said.

The government will buy back securities such as 7.33 per cent GS 2026, 5.74 per cent GS 2026, 8.15 per cent GS 2026, 8.24 per cent GS 2027, as per the notification.

The central bank has not notified specific amounts for the individual securities within the aggregate ceiling of Rs 20,000 crore.

Auction for securities will be conducted using multiple price methods, the RBI said.

This comes at a time when the surplus banking system liquidity narrowed sharply after the goods and services tax (GST) outflows, putting pressure on the short-term money market rates.

Currently, the liquidity in the banking system is estimated to be in surplus of around Rs 2,884.18 crore as on July 22, compared to the surplus of Rs 9,289.18 crore as on July 21.

In order to support liquidity, the central bank has conducted various variable rate repo (VRR) auctions to infuse transient liquidity into the banking system.

The apex bank has conducted 12 VRR auctions and infused Rs 3,50,625 crore of transient liquidity into the banking system.

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