Directive on unclaimed maturity proceeds of TDs

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The Reserve Bank of India (RBI) on Friday said unclaimed maturity proceeds of term deposits (TDs) with banks will attract the rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.

This directive comes in the backdrop of TD rates of some of the small finance banks being higher than savings bank (SB) rate (on deposits above ₹1 lakh) in the less than one-year and above five years maturity buckets.

Hitherto, if a term deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract interest rate as applicable to savings deposits.

Also read: At G-Sec auctions, bid at yields closer to the prevailing secondary market level: RBI to PDs

But after reviewing its “instructions on interest on overdue domestic deposits”, the RBI said: “it has been decided that if a TD matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on the matured TD, whichever is lower.”

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Reserve Bank of India – Press Releases

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The results of the auctions of 5.63% Government Stock 2026 (Re-Issue), GoI FRB 2033 (Re-Issue), 6.64% Government Stock 2035 (Re-Issue) and 6.67% Government Stock 2050 (Re-issue) held on July 02, 2021 are:

Auction Results 5.63% GS 2026 GoI FRB 2033 6.64% GS 2035 * 6.67% GS 2050
I. Notified Amount ₹11000 Crore ₹4000 Crore ₹10000 Crore ₹7000 Crore
II. Underwriting Notified Amount ₹11000 Crore ₹4000 Crore ₹10000 Crore ₹7000 Crore
III. Competitive Bids Received        
(i) Number 210 106 334 176
(ii) Amount ₹21148 Crore ₹18016.615 Crore ₹28515.843 Crore ₹17533.5 Crore
IV. Cut-off price / Yield 99.60 99.90 99.07 94.31
(YTM: 5.7246%) (YTM: 4.9251%) (YTM: 6.7433%) (YTM: 7.1345%)
V. Competitive Bids Accepted        
(i) Number 2 8 164 85
(ii) Amount ₹500 Crore ₹3999.975 Crore ₹12497.234 Crore ₹6989.035 Crore
VI. Partial Allotment Percentage of Competitive Bids 0.00% 45.83% 6.86% 23.95%
(0 Bids) (3 Bids) (15 Bids) (1 Bid)
VII. Weighted Average Price/Yield 99.61 99.94 99.13 94.49
(WAY: 5.7222%) (WAY: 4.9207%) (WAY: 6.7366%) (WAY: 7.1191%)
VIII. Non-Competitive Bids Received        
(i) Number 3 2 4 6
(ii) Amount ₹5.222 Crore ₹0.025 Crore ₹2.766 Crore ₹10.965 Crore
IX. Non-Competitive Bids Accepted        
(i) Number 3 2 4 6
(ii) Amount ₹5.222 Crore ₹0.025 Crore ₹2.766 Crore ₹10.965 Crore
(iii) Partial Allotment Percentage 100% (0 Bids) 100% (0 Bids) 100% (0 Bids) 100% (0 Bids)
X. Amount of Underwriting accepted from primary dealers ₹11000 Crore ₹4000 Crore ₹10000 Crore ₹7000 Crore
XI. Devolvement on Primary Dealers ₹10494.778 Crore 0 0 0
* Greenshoe amount of ₹2,500 crore has been accepted

Ajit Prasad
Director   

Press Release: 2021-2022/480

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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBl) has imposed, by an order dated July 02, 2021, a monetary penalty of ₹1.00 lakh (Rupees One Lakh only) on the Nagar Sahkari Bank Limited, Etawah (the bank) for contravention of section 35A read with section 56 of the Banking Regulation Act, 1949 and regulations on ‘Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs’ .This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid provisions of the Act and directions issued thereunder by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, that the bank failed to adhere to the provisions related to IRAC Norms. Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for violation of the said directions.

After considering the bank’s written reply and oral submissions made by the bank during personal hearing and subsequent additional submissions, RBI came to the conclusion that the aforesaid charge of non-adherence/violation of provisions of the Act and directions issued thereunder by RBI was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/479

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Reserve Bank of India – Press Releases

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1. Reserve Bank of India – Liabilities and Assets*
(₹ Crore)
Item 2020 2021 Variation
Jun. 26 Jun. 18 Jun. 25 Week Year
1 2 3 4 5
4 Loans and Advances          
4.1 Central Government
4.2 State Governments 3416 11799 6526 -5273 3110
* Data are provisional.

2. Foreign Exchange Reserves
Item As on June 25, 2021 Variation over
Week End-March 2021 Year
₹ Cr. US$ Mn. ₹ Cr. US$ Mn. ₹ Cr. US$ Mn. ₹ Cr. US$ Mn.
1 2 3 4 5 6 7 8
1 Total Reserves 4519253 608999 55237 5066 300300 32015 684930 102162
1.1 Foreign Currency Assets 4201958 566240 51406 4700 277791 29546 664379 98636
1.2 Gold 269344 36296 3767 365 21621 2416 15734 2773
1.3 SDRs 11119 1498 41 0 255 13 193 54
1.4 Reserve Position in the IMF 36832 4965 22 1 634 41 4623 698
*Difference, if any, is due to rounding off

4. Scheduled Commercial Banks – Business in India
(₹ Crore)
Item Outstanding as on Jun. 18, 2021 Variation over
Fortnight Financial year so far Year-on-year
2020-21 2021-22 2020 2021
1 2 3 4 5 6
2 Liabilities to Others            
2.1 Aggregate Deposits 15298539 -14614 299635 185026 1374661 1431411
2.1a Growth (Per cent)   –0.1 2.2 1.2 11.0 10.3
2.1.1 Demand 1754133 23857 -164563 -107060 163612 301693
2.1.2 Time 13544405 -38471 464198 292086 1211049 1129718
2.2 Borrowings 249201 6726 -22570 5176 -70268 -37668
2.3 Other Demand and Time Liabilities 631791 41881 -84173 -24816 29216 112288
7 Bank Credit 10841866 -1559 -125183 -107643 596909 596188
7.1a Growth (Per cent)   –0.0 –1.2 –1.0 6.2 5.8
7a.1 Food Credit 86912 -3064 37525 25658 17870 -2377
7a.2 Non-food credit 10754953 1505 -162708 -133301 579040 598565

6. Money Stock: Components and Sources
(₹ Crore)
Item Outstanding as on Variation over
2021 Fortnight Financial Year so far Year-on-Year
2020-21 2021-22 2020 2021
Mar. 31 Jun. 18 Amount % Amount % Amount % Amount % Amount %
1 2 3 4 5 6 7 8 9 10 11 12
M3 18844594 19168056 -4359 0.0 519527 3.1 323462 1.7 1903387 12.3 1848565 10.7
1 Components (1.1.+1.2+1.3+1.4)                        
1.1 Currency with the Public 2751828 2887414 10263 0.4 217332 9.2 135585 4.9 450404 21.3 320334 12.5
1.2 Demand Deposits with Banks 1995136 1889371 23617 1.3 -164718 -9.5 -105765 –5.3 169698 12.1 316398 20.1
1.3 Time Deposits with Banks 14050278 14341076 -38552 -0.3 466705 3.7 290797 2.1 1274253 10.7 1200355 9.1
1.4 ‘Other’ Deposits with Reserve Bank 47351 50194 314 0.6 209 0.5 2844 6.0 9032 30.4 11479 29.6
2 Sources (2.1+2.2+2.3+2.4-2.5)                        
2.1 Net Bank Credit to Government 5850374 5919990 -105346 -1.7 539625 10.9 69616 1.2 910873 19.8 420003 7.6
2.1.1 Reserve Bank 1099686 1049521 -58800   131704   -50164   204200   -74375  
2.1.2 Other Banks 4750689 4870469 -46546 -0.9 407921 10.3 119780 2.5 706673 19.3 494378 11.3
2.2 Bank Credit to Commercial Sector 11668469 11551981 -274 0.0 -136271 -1.2 -116488 –1.0 643980 6.3 649608 6.0
2.2.1 Reserve Bank 8709 5749 3785   -5979   -2960   -1256   -1438  
2.2.2 Other Banks 11659760 11546232 -4059 0.0 -130292 -1.2 -113528 –1.0 645236 6.3 651046 6.0

8. Liquidity Operations by RBI
(₹ Crore)
Date Liquidity Adjustment Facility MSF* Standing Liquidity Facilities Market Stabilisation Scheme OMO (Outright) Long Term Repo Opera tions& Targeted Long Term Repo Opera tions# Special Long- Term Repo Operations for Small Finance Banks Special Reverse Repo£ Net Injection (+)/ Absorption (-) (1+3+5+6 +9+ 10+11+ 12-2- 4-7-8-13)
Repo Reverse Repo* Variable Rate Repo Variable Rate Reverse Repo Sale Purchase
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Jun. 21, 2021 314349 0 100 -314249
Jun. 22, 2021 345816 0 10199 160 -335457
Jun. 23, 2021 349005 0 200 -348805
Jun. 24, 2021 345721 0 -345721
Jun. 25, 2021 354255 2 -354253
Jun. 26, 2021 2541 91 -2450
Jun. 27, 2021 6001 59 -5942
* Includes additional Reverse Repo and additional MSF operations (for the period December 16, 2019 to February 13, 2020)
# Includes Targeted Long Term Repo Operations (TLTRO) and Targeted Long Term Repo Operations 2.0 (TLTRO 2.0) and On Tap Targeted Long Term Repo Operations. Negative (-) sign indicates repayments done by Banks.
& Negative (-) sign indicates repayments done by Banks.
£ As per Press Release No. 2021-2022/177 dated May 07, 2021. From June 18, 2021, the data also includes the amount absorbed as per the Press Release No. 2021-2022/323 dated June 04, 2021.

The above information can be accessed on Internet at https://wss.rbi.org.in/

The concepts and methodologies for WSS are available in Handbook on WSS (https://rbi.org.in/scripts/PublicationsView.aspx?id=15762).

Time series data are available at https://dbie.rbi.org.in

Ajit Prasad
Director   

Press Release: 2021-2022/478

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Reserve Bank of India – Tenders

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Minutes of the Pre-Bid Meeting held on June 30, 2021 with respect to the Tender for Providing Integrated Facility Management Service (IFMS) at College of Agricultural Banking (CAB), Pune and its other premises uploaded on the MSTC portal on June 21, 2021

The Pre-Bid Meeting for the Integrated Facility Management Service (IFMS) was held on June 30, 2021 at 11.00 AM via Cisco WebEx. The meeting was chaired by Principal, CAB and attended by Vice-Principal, CAB, officials of RBI and prospective bidders. All the vendor representatives were requested to put forth their doubts/ queries which were discussed and clarified as below. It was reiterated that this is supplementary to the tender document and will form part of the tender document. In case there is any conflict between the tender document and the corrigendum, the latter shall prevail:

Sr. No. Doubts/ queries raised Clarifications provided 1. Clarification was sought on the consideration of increase in Consumer Prices Index for industrial workers at the time of renewal of contract. Please refer to corrigendum. 2. Is EMD mandatory or any alternative like bid security declaration or bank guarantee can be provided?

Can requirement of EMD be exempted for MSMEs?

As per our internal guidelines, no alternative for EMD will be accepted.

As per our internal guidelines, EMD is mandatory for all the bidders.

3. If there is change in any applicable taxes, local levies, etc., imposed by Central/State Government/Local bodies, will the same be paid? Payments will be made as per the applicable taxes, local levies, etc., imposed by Central/State Government / Local bodies. 4. Whether manpower is required to be deployed on all days of week. The deployment of manpower given in Section VII of the tender document takes into consideration availability of manpower on all days including relievers. 5. Whether it will be the responsibility of the vendor to ensure that no persons shall create any disruption/hindrance/problem of any nature in CAB either explicitly or implicitly, after expiry/termination of the contract. The contractor shall remove all staff/workers deployed by him from the premises of CAB on expiry/termination of the contract and ensure that no such persons shall create any disruption/ hindrance/ problem of any nature in CAB either explicitly or implicitly. 6. Whether conditions related to termination of contract on page 24, para 44 could be changed? It is clarified that, conditions mentioned in para 44, page 24 of tender document related to termination of contract need to be strictly followed. 7. Whether tender can be signed by the authorised Power of Attorney holders also (para 45 iii – page 25)? Please refer to corrigendum. 8. Can the arbitrator to be appointed in case of disputes related to agreement be appointed by mutual consent instead of by CAB, Pune? No. Please refer to para 40 and 41 on page 24 of tender document. 9. Will the cost of supply of welcome kits have to be borne by the contractor? CAB will provide the welcome kits, or the contractor will have to supply the same on reimbursement basis. 10. Is the Organic Waste converter (OWC) Plant provided by CAB, Pune or to be arranged by contractor at own cost? OWC plant is available & operational in CAB Campus. 11. Whether dead plants will have to be replaced by the contractor at own cost? The damaged plants / lawns etc. including dead plants shall be got replaced at the cost of the contractor. 12. Whether labour charges/minimum labour charges will be paid w.r.t catering services provided by the vendor? The conditions mentioned in the tender contract need to be strictly adhered to. No separate compensation will be paid for staff deployed for catering purpose. 13. Whether payment for catering facilities will be paid by CAB, Pune Payment related to meals provided for National / International participants of the training programmes being conducted at the College, Guests, Guest Faculties will be paid by CAB, Pune at contracted rates.

Payment for catering facilities provided to staff employees and other vendors in the Canteen & users of Visiting Officers’ Flats/THH will be borne by them based on rates decided by mutual consent.

Bidders may contact CAB to know the existing rates of staff canteen and VOF.

14. Does the client certificate mentioned in Annexure II need to be in the specified format? Client certificates incorporating all the information mentioned in the format as given in Annexure II will be accepted. However, if any information is missing/not matching our requirements, the same will not be considered. 15. Can the Certificate required as per format given in Annexure VI be certified by Chartered Accountant (CA)? The certificate has been amended.
Please refer to corrigendum. 16. Clarification required on certificate as per Annexure XIV-A The certificate has been amended.
Please refer to corrigendum. 17. Is the initial period of contract 8 months? The period of contract is generally aligned with the Financial Year of RBI which is from April-March. Hence the initial period of contract is till March 31, 2022. However, the contract is renewable for further 2 years subject to conditions outlined in the tender. 18. Clarification was sought for eligibility criteria outlined in para 1.2 on page 13 of tender namely

“The bidder should have minimum 5 years of experience of undertaking similar works viz., ‘Providing Integrated Facility Management Services at ………., on or before April 30, 2016.”

Whether the total experience needs to be of 5 years continuously from 2016 to 2021 or the experience needs to be in last 5 years irrespective of the completion period?

The experience needs to be in last 5 years irrespective of the completion period. For establishing the same the bidder should submit copy/copies of work order/s for similar work, issued to the bidder, on or before April 30, 2016. 19. Whether the work orders to be provided by the bidder for evaluation should have all the work areas as mentioned in the CAB tender in a single work order? Please refer to Section III of the tender document. 20. Whether para 23 on page 22 pertaining to penalty clauses can be modified to reduce the penalty? All the conditions mentioned in the para 23 on page 22 of tender document will be strictly applicable. 21. How is the location-wise manpower deployment requirement? The deployment of manpower as mentioned in Section VII of tender document to different locations will be decided by CAB. 22. Clarification was sought on the nature of complaint management system required to be provided by vendor. The contractor is required to have an application based (mobile) complaint management system which should enable prompt response by raising alerts for immediate action and regular monitoring of the work done through scroll reports generated for our perusal and for separate audit if required.

Bidders not having such an application-based system are liable to be rejected.

23. Whether a separate insurance policy as stated in para no. 18 on page 20 will have to be taken for vendor staff even when they are covered under ESIC? Yes. All the conditions mentioned in para No. 18 on page 20 of tender document are to be strictly followed. 24. Whether the firm shall have to arrange the required connection from the Bank’s source of supply of water / electricity without any extra claim on the Bank? What will be the source of supply? Yes. Source of supply shall be existing water/electricity points available at various locations of the Properties. 25. Whether any regulatory guidelines/standards pertaining to functioning of canteen are applicable? The vendors will have to strictly adhere to the scope of work and terms and conditions outlined in the tender. While the College expects high standards of work efficiency, no regulatory guidelines have been prescribed. 26. Are catering employees allowed to stay in campus considering the canteen timings? Residential accommodation shall not be provided by CAB, RBI to the staff/workmen of the vendor. However, one chef and two helpers/waiters of the vendor will be allowed to stay in the premises of CAB, RBI to attend to early/late hour duties. Their presence, however, should not cause any disturbance to normal functioning of the College. 27. Whether the equipment, tools and tackles required for different work areas will be provided by the CAB? The scope provided in the tender clearly outlines the equipment expected to be available with the vendor and that which would be provided by CAB. 28. Whether the toiletries will be provided by CAB or to be procured by vendor at own cost? Toiletries will be provided by CAB or will have to be procured by vendor on reimbursement basis. 29. Whether charges for inter-campus travel by staff will be provided by CAB? All travel charges related to the scope as outlined in the tender will be borne by the vendor. 30. Whether there is any limit on the liability to be borne by the vendor in case of breach of conditions of the contract? There is no upper limit on the liability to be borne by the vendor in case of breach of conditions of the contract. 31. Whether experience requirement for staff to be deployed can be reduced? No. 32. Can the minimum work force mentioned in para 1.3(f) on page 13 can be reduced? Condition mentioned in para 1.3 (f) is strictly applicable. 33. Whether the turnover requirement is for overall turnover or IFMS related turnover? Please refer to corrigendum. 34. Whether subletting any portion of the contract is allowed? Please refer to para 46 on page 25 of the tender document. 35. Whether additional payments will be made for works done not outlined in the scope. While the CAB reserves the right to modify/change the scope of work as per its needs, no additional payment will be made for minor works assigned in addition to original work. In cases of major works, the same will be paid by CAB. 36. Whether the manpower deployment provided in section VII includes all premises of CAB? Yes. 37. Whether there is a schedule for attending to various complaints as outlined in the scope? All complaints outlined in the scope will have to be attended on an immediate basis. 38. The number of tanks and their capacity to be provided. The number & capacity of water tanks available at various locations of premises is as follows:

48 Overhead tanks and 8 underground tanks with capacities ranging from 700 litres to 20000 litres.

39. Will the plumber be required to liaison with PMC? Yes. The plumber / firm’s representatives will be required to liaison with PMC for any shortfall in demand of water or any other matters to be dealt with the authorities. 40. List of utilities in place, their OEM and AMC details, list of potted plants. Bidder may seek appointment to visit CAB, Premises for obtaining necessary information in this regard. 41. Whether loss of cutlery due to breakage will have to be borne by the vendor? Loss/ damage of cutlery due to vendor staff will be recovered from the vendor. However, loss/damage due to other reasons will be borne by CAB 42. Whether the vendor is required to have a full-fledged office in Pune. The vendor should have a full-fledged office with sufficient qualified staff to provide IFMS service in Pune. 43. Any relaxation in eligibility/EMD/SD or evaluation criteria will be given to MSMEs? As per our internal guidelines, provisions of section 11 of MSMED Act, 2006 are not applicable to RBI and therefore the notification issued by Government of India under the above Act is also not applicable to RBI. Hence, no relaxation will be given to MSMEs. 44. Whether minimum deployment of catering will be 10 staff at all times? The number of staff requirement can be reduced or increased based on the need and the decision will be taken by CAB. 45. Whether any minimum guaranteed amount will be paid for catering services? No. The payment for catering services will be made based on actual per meal/item basis. 46. Whether any cold storage facility is available for catering purpose? Limited cold storage facility is available with CAB.
Sr no. Para No./ Page No. Original as per tender document Revised 1 Page No. 9

Para no. 1

Section I-Notice Inviting Tender (NIT)

College of Agricultural Banking (CAB), Reserve Bank of India, Pune-411016, hereinafter referred to as “the CAB”, invites E-tenders under Two – Bid system (Technical & Financial Bid) for the work, viz “Providing Integrated Facility Management Service (IFMS) at CAB and its premises (as detailed in Annexure XIII)”. IFMS will comprise of Facility Management and Housekeeping, Maintenance of Plumbing and Sanitary, Electrical, Electro-mechanical and Carpentry Installations in the Premises, Horticultural works, Pest Control Treatment, OWC, and Catering services. The initial agreement shall be for provision of the said service for a period from August 01, 2021 to March 31, 2022, which shall be extendable up to two more years (April-March) subject to mutual consent of both the parties and based on the satisfactory performance of the Service Provider/contractor and on the basis of increase in Consumer Prices Index for industrial workers. The price index for renewal will be considered before six-month index of the contract period. College of Agricultural Banking (CAB), Reserve Bank of India, Pune-411016, hereinafter referred to as “the CAB”, invites E-tenders under Two – Bid system (Technical & Financial Bid) for the work, viz “Providing Integrated Facility Management Service (IFMS) at CAB and its premises (as detailed in Annexure XIII)”. IFMS will comprise of Facility Management and Housekeeping, Maintenance of Plumbing and Sanitary, Electrical, Electro-mechanical and Carpentry Installations in the Premises, Horticultural works, Pest Control Treatment, OWC, and Catering services. The initial agreement shall be for provision of the said service for a period from September 01, 2021 to March 31, 2022, which shall be extendable up to two more years (April-March) subject to mutual consent of both the parties and based on the satisfactory performance of the Service Provider/contractor taking into consideration the statutory rates like Basic Wages, VDA, EPF, ESI, Bonus, GST, etc. 2 Page No. 16

Para No. A

Financial Turnover
Average Turnover of IFMS works during the last three financial years (2017-18, 2018-19, 2019-20) Financial Turnover
Average Turnover during the last three financial years (2017-18, 2018-19, 2019-20) 3 Page No. 25

Para no. 45 (iii)

Section IV- Part 1- General and Special Conditions and Instructions to Tenderers

The Tender submitted on behalf of a firm shall be signed by all the partners of the firm or a partner who has the necessary authority on behalf of the firm to enter into the proposed contract. Otherwise, the Tender may be rejected. The Tender submitted on behalf of a firm shall be signed by all the partners of the firm or a partner or any other person having Power of Attorney who has the necessary authority on behalf of the firm to enter into the proposed contract. Otherwise, the Tender may be rejected. 4 Page no. 67

Annexure VI

FORM OF BANKERS’ CERTIFICATE FROM A SCHEDULED BANK Revised format as below 5 Page No. 83

Annexure XIV-A

Format has been amended Revised format as below

The above firm is considered financially sound to be entrusted with the contract for works estimated to cost ₹ 309 Lakh.

1. Bankers’ certificates should be on letter head of the bank, sealed in cover addressed to enlistment authority.

In case of partnership firm, certificate to include names of all partners as recorded with the bank.

1. Whether having any Office at Pune:

(If Yes, please provide Address, name of contact persons and details of contact (e-mail Id / Phone, etc.)

2. Please indicate the status of the Office: (Full-fledged regional Office/Branch Office). The firm should have its own office (s) in Pune with sufficient qualified technical personnel in providing IFMS Service.

3. No. of Permanent staff at the Centre:

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At G-Sec auctions, bid at yields closer to the prevailing secondary market level: RBI to PDs

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The Reserve Bank of India (RBI) is understood to have asked primary dealers(PDs) to bid at Government Security (G-Sec) auctions at yields closer to the prevailing secondary market level.

This comes in the backdrop of some PDs bidding at higher yields (or quoting lower price) to buy G-Secs at auctions at a time when the government borrowing programme for FY22 is huge at ₹12.10 lakh crore.

Currently, the central bank is undertaking G-Sec Acquisition Programme (G-SAP) as well as special open market operations to keep the yields under check.

Also read: Investors’ interest in 2030 G-Sec wanes

So, the central bank expects PDs, whose primary role is to support the Government’s market borrowing programme and improve the secondary market liquidity in G-Secs, to bid accordingly as they get a fee for their underwriting commitment at G-Sec auctions.

Cost of borrowing

Market players say if yields quoted by bidders at G-Sec auctions are higher than the prevailing secondary market yields, the RBI either devolves the auction on PDs or rejects all the bids. This ensures that the Government’s cost of borrowing does not go up.

Meanwhile, on a review of market conditions and market borrowing programme of the government, RBI has decided that the benchmark securities of 2-year, 3-year, 5-year, 10-year, 14-year tenors and floating rate bonds (FRBs) will be, henceforth, be issued using uniform price auction method.

For other benchmark securities — 30-year and 40-year — the auction will continue to be multiple price-based auction, as hitherto.

In a uniform price auction, all the successful bidders are required to pay for the allotted quantity of securities at the same rate at the auction cut-off rate, irrespective of the rate quoted by them. In a multiple price auction, the successful bidders are required to pay for the allotted quantity of securities at the respective price/ yield at which they have bid.

At the weekly G-Sec (GS) auction,the RBI devolved about 95 per cent of the notified amount of ₹11,000 crore the Government wanted to raise through the 2026 G-Sec (coupon rate: 5.63 per cent) on PDs.

Greenshoe amount

The auction of three other papers — Government of India FRB 2033 (notified amount: ₹4,000 crore), 6.64 per cent GS 2035 (₹10,000 crore) and 6.67 per cent GS 2050 (₹7,000 crore) — sailed through. In fact, RBI accepted greenshoe amount of ₹2,500 crore in the case of GS 2035.

In the secondary market, yield on the devolved 2026 G-Sec went up about 5 basis points to close at 5.75 per cent(previous close:5.70 per cent), with its price declining about 21 paise to close at ₹99.49 (₹99.70).

Bond yields and price are inversely related and move in opposite directions.

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Reserve Bank of India – Press Releases

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    5.63% GS 2026 GOI FRB 2033 6.64% GS 2035* 6.67% GS 2050
I. Notified Amount ₹11,000 cr ₹4,000 cr ₹10,000 cr ₹7,000 cr
II. Cut off Price/Implicit Yield at cut-off 99.60/5.7246% 99.90/4.9251% 99.07/6.7433% 94.31/7.1345%
III. Amount accepted in the auction ₹505.222 cr ₹4000 cr ₹12,500 cr ₹7,000 cr
IV. Devolvement on Primary Dealers ₹10,494.778 cr Nil Nil Nil
* Greenshoe amount of ₹2,500 crore has been accepted

Ajit Prasad
Director   

Press Release: 2021-2022/477

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Reserve Bank of India – Notifications

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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Reserve Bank of India – Press Releases

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The Reserve Bank of India today released the data showing daily merchant and inter-bank transactions in foreign exchange for the period May 24, 2021 to May 28, 2021.

All Figures are in USD Millions
Position Date MERCHANT INTER BANK
FCY / INR FCY / FCY FCY / INR FCY / FCY
Spot Forward Cancel Forward Spot Forward Cancel Forward Spot Swap Forward Spot Swap Forward
Purchase
24-05-2021 3,402 1,193 1,187 359 250 319 6,931 9,961 520 2,873 1,989 421
25-05-2021 5,301 2,161 3,011 386 381 320 10,641 13,427 663 4,502 4,773 571
27-05-2021 5,327 1,918 2,039 463 337 479 9,494 14,058 637 4,496 4,637 140
28-05-2021 8,294 2,508 1,562 468 485 368 17,202 16,510 612 4,451 3,451 387
Sales
24-05-2021 3,949 1,983 531 349 249 321 6,524 10,324 640 2,897 2,144 421
25-05-2021 5,318 3,187 1,949 386 369 319 10,898 12,906 1,001 4,513 4,920 571
27-05-2021 4,664 3,979 1,173 452 339 489 9,664 15,582 340 4,517 4,462 140
28-05-2021 4,753 3,160 1,989 471 477 357 17,503 16,984 1,371 4,493 3,398 387
(Provisional Data)

Ajit Prasad
Director   

Press Release: 2021-2022/476

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2 Investments To Get Real Positive Returns Amid Low Interest Rates

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Investment

oi-Roshni Agarwal

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In low interest rate regime, when conservative or most sought after investment instruments are just reaping returns not able to beat inflation rate which for some time now amid soaring fuel and food prices has hit 6 percent level for CPI inflation, investors are on the hunt for better and lucrative bets. So, to tide over the situation i.e. to earn a return that does not result in capital erosion for you, here are suggested some better investment avenues.

2 Investments To Get Real Positive Returns Amid Low Interest Rates

2 Investments To Get Real Positive Returns Amid Low Interest Rates

1. Hybrid funds:

As the name signifies these hybrid funds they invest in a mix of debt and equity and thus offer the best of both worlds i.e. safety combined with better returns. Also, in some of the cases, the hybrid fund even bet on gold and international funds provide a better diversification.

Further they can be either conservative i.e. bent more towards the debt part or as else in the other case on the equity side i.e. can be aggressive. In the last one year, the return from most such funds has been to the tune of between 40-45 percent, 3-year returns have been 9-11 percent.

Taxation of hybrid funds- for the equity component the taxation is like that of equity mutual funds

2. Target Maturity Debt funds:

These funds carry low interest rate and carry a pre-specified term i.e. as per the underlying maturity of bonds where the corpus is invested into. Usually to reap the best out of these funds and avoid interest rate risk, these funds should be held till maturity.

Also the offering in this category of funds are of those funds which invests into central and state government bonds.

Furthermore, considering the taxation aspect, if these funds are held for over 3 years, LTCG are taxed at 20% after providing for taxation benefit, so these funds can even offer a better return than bank FDs. So, in a case if the investor remains invested into the investment option till maturity he or she is likely to get the return as indicated. Then the other positive of the fund is that these funds provide an opportunity to an investor to enter and exit at any time.

GoodReturns.in

Story first published: Friday, July 2, 2021, 19:50 [IST]



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