- The changes in benchmark securities of tenor 2-year, 3-year, 5-year, 10-year, 14-year tenor and Floating Rate Bonds (FRBs) are announced by the central bank.
- The decision was taken according to the review of market status, market borrowing program of the government.
- Henceforth, there will be ‘Uniform price auction method’ for benchmark securities of tenor 2-year, 3-year, 5-year, 10-year, 14-year tenor and FRBs. Under this method, all the successful bidders are required to pay for the allotted quantity of securities at the same rate, which is the auction cut-off rate, irrespective of the rate quoted by them.
- For other benchmark securities i.e. 30-year and 40-year, the auction will continue to be multiple price-based auctions. In the case of multiple price-based auctions, the successful bidders are required to pay for the allotted quantity of securities at the respective price/yield at which they have bid.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikant Das
