Govt, RBI hikes treasury bills issuance amount to ₹1.95 lakh cr for last month of FY23.
1 min read 24 Feb 2023, 09:57 PM ISTIn March, there will be five auctions --- of which --- 91 days of treasury bills will be worth ₹9,000 crore each, while 182-days and 364 days will be ₹16,000 crore and ₹14,000 crore each respectively.
PremiumThe government in consultation with RBI has increased the issuance amount of treasury bills to ₹1.95 lakh crore in the last month of the current fiscal FY23. Earlier, the issuance amount was ₹1.45 lakh crore in March 2023. The hike in the treasury bills issuance is likely to meet short-term cash discrepancy.
There are three treasury bills having maturity periods of 91 days, 182 days, and 364 days for auction in March.
In March, there will be five auctions --- of which --- 91 days of treasury bills will be worth ₹9,000 crore each, while 182-days and 364 days will be ₹16,000 crore and ₹14,000 crore each respectively.
As per the Finance Ministry, the first issuance of treasury bills will be on March 2 after its auction on March 1st. The second auction will be held on March 8th and later issuance on March 9th.
Similarly, the third auction will be held on March 15 and will be issued on March 16.
There will be two more auctions held on March 23rd and March 29th, and just like above, will be issued the very next day which would be March 24th and March 31st.
Of the total ₹1.95 lakh crore, overall, the 91-day treasury bills will be aggregated to ₹45,000 crore; 182-day treasury bills to ₹80,000 crore; and 364-day treasury bills of ₹70,000 crore cumulatively.
FinMin said, "the Government of India, in consultation with the Reserve Bank of India, will have the flexibility to modify the notified amount and timing for auction of Treasury Bills depending upon the requirements of the Government of India, evolving market conditions and other relevant factors, after giving due notice to the market."
However, the ministry added, the calendar is subject to change, if circumstances so warrant, including for reasons such as intervening holidays. Such changes, if any, will be communicated through press releases.
