RBI accepts Rs 5,500 crore Bids at Switch and Conversion Auction of Government Bonds

Current Context: The Reserve Bank of India (RBI) accepted bids worth Rs 5,500 crore at an auction for conversion and switching of five government of India (GoI) bonds against the notified amount of Rs 11,000 crore.

• The auction was conducted on April 17th 2023 and involved five government of India (GoI) bonds with different maturity dates and interest rates.
• The conversion and switching of bonds is a way of managing the debt and liquidity in the market by exchanging old bonds with new ones with different maturity dates and interest rates.
• The RBI conducts the auction by inviting bids from market participants who agree to sell the source securities and buy the destination securities at their respective quoted prices.
• The types of bonds involved in the auction include floating rate bonds (FRB), which have variable interest rates that change periodically, and fixed rate bonds, which have fixed interest rates that remain constant throughout the tenure.

Question: 

Q.1 What was the notified amount of the auction for conversion and switching of bonds?
a. Rs 5,500 crore
b. Rs 10,000 crore
c. Rs 11,000 crore
d. Rs 24,000 crore