On April 06, 2023, the Reserve Bank of India plans to hold its first bond auction of the current financial year, intending to raise around ₹8,000 crore. The auction will feature new five-year government bonds set to mature in 2028.
The Indian Government has announced its plan to raise up to ₹33,000 crore by auctioning three securities. These securities will have varying maturity dates, with one maturing in 2028, another in 2033, and the third in 2052. The government aims to raise this amount through the auction of these securities.
Here are some potential FAQs related to the news you mentioned:
A: RBI stands for the Reserve Bank of India, which is India's central bank responsible for regulating the country's monetary policy and overseeing the banking system.
A: A bond is a debt security that represents a loan made by an investor to a borrower, typically a government or corporation. Bonds typically pay periodic interest payments to the investor and return the principal investment at maturity.
A: The purpose of issuing a bond is to raise funds from investors to finance various projects or investments. In the case of the RBI, issuing bonds can help raise funds to support the country's economic growth and development.
A: The new bond issued by RBI may be open for subscription by banks, primary dealers, and other eligible institutions.
A: As per the news, the new bond issued by RBI has a maturity of 5 years. This means that the bond will pay periodic interest payments to investors for 5 years, after which the principal investment will be returned.