BackRBI to hold first auction of inflation bonds on 4 June
The Indian central bank will be offering bonds worth `1,000 crore
Premium(Pradeep Gaur/Mint)
Mumbai: The Reserve Bank of India (RBI) will hold the first auction of new inflation-indexed bonds on 4 June, the central bank said on its website. It will be offering bonds worth ₹ 1,000 crore, RBI said.
Individuals can bid for up to 20%, or ₹ 200 crore, of the notified amount through the Reserve Bank’s online bond trading platform. Results of the auction will be announced on 5 June.
These 10-year bonds will have a fixed coupon rate and their principal value will be linked to the wholesale price index.
The bonds are being issued with an aim to “protect savings of poor and middle classes from inflation and incentivize household sector to save in financial instruments rather than buy gold," RBI had said while announcing the bond issuance earlier this month.
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