The Reserve Bank of India (RBI) will be conducting two more Government Security (G-Sec) auctions in March 2021 even as the size of the auction it will be conducting from now till the week ending March 12, 2021 has been increased by up to ₹7,000 crore.
With Finance Minister Nirmala Sitharaman announcing on Monday that the Government would need another ₹80,000 crore, the Government of India (GoI), in consultation with the RBI, decided to modify the indicative calendar for issuance of Government dated securities for the remaining part of the second half of the fiscal 2020-21 (February 1 – March 31, 2021).
According to the revised issuance calendar for marketable dated securities for the remaining period of H2 (February – March 2021), the government will be borrowing between ₹4,000 crore and ₹7,000 crore more every week than what it planned to borrow as per the calendar issued on October 15, 2020.
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The Government of India, in consultation with the RBI, reserves the right to exercise the green-shoe option to retain additional subscription up to ₹2,000 crore each against one or more security/ies indicated in the auction notification, RBI said in a statement.