Government to buyback G-Secs aggregating ₹30,000 crore
The Government will buyback five Securities through auction for an aggregate amount of ₹30,000 crore (face value) on January 16th, the RBI said in a statement.
This announcement comes amid liquidity tightness in the banking system. The buyback will lead to funds infusion.
The banking system is facing a huge liquidity deficit, is underscored by the fact that at the last count the deficit was estimated at about ₹2 lakh crore on January 9.
This deficit has arisen due to RBI’s intervention in the foreign exchange market to prevent sharp depreciation of the Rupee and lacklustre government spending, say market experts.
Out of the five Government Securities that will be bought back at the forthcoming auction, four mature in 2025 and one in 2026.
At the last buyback auction of five G-Sec aggregating ₹25,000 crore conducted on January 9, market participants offered G-Secs with face value amounting to ₹45,710 crore. However, the central bank accepted offers aggregating ₹19,217 crore.