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Reserve Bank of India – Tenders

Tenders

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NIT – RBI/Bhubaneswar/Estate/497/20-21/ET/769

Pre-bid meeting for the captioned e-tender was held on June 28, 2021 at 11:00 AM in the Conference Room, RBI, Bhubaneswar to clarify the queries of the bidders. The meeting was attended by the following persons:

Bank’s Representatives

1. Amol R Wadhonkar, Asst Manager

2. Arunima Dash, Junior Engineer (Elec),

Firm’s representative

1. M/s. Key Business Solutions.

Further to the discussions held with the tenderer, clarifications arrived thereof are indicated as under.

S. No. Queries raised by firm’s representative Clarification given by the Bank
1. The vendor enquired about the modes of submitting EMD It was clarified that the EMD can be submitted through DD physically or through post or through NEFT before July 13, 2021 2:00 PM
2. The vendor enquired whether 5 years experience of doing similar nature work mandatory? The experience of 5 years of carrying out similar nature work is mandatory for participating bidders as per tender terms and conditions. Experience of parent company will not be accepted.
3. The vendor enquired about the amount of transaction fee to be paid on MSTC portal? The vendor was informed that the MSTC portal auto calculates the transaction amount to be paid during submission of bid.
4. Whether interconnecting cables are to be provided by the firm? The firm may use the existing cables, however, if any cable or lugs is damaged during dismantling or is found to be of insufficient length during installation the firm has to replace the same at its own cost.
5. Is it mandatory to carry out battery impedance test quarterly? Battery impedance test has to be carried out quarterly to ascertain the healthiness of the battery as per tender terms and conditions.

• All the above points were noted and agreed by the firm.

  1. These minutes of pre-bid meeting shall form the part of bid document/Agreement.

  2. Rest of the terms and conditions and specifications of the bid document shall continue to remain same

  3. The above amendments/ clarifications are issued for the information for all the intending bidders.

  4. The submission of bid by the firm shall be construed to be in conformity to the bid document and amendments/ clarifications given above.

Regional Director
RBI, Bhubaneswar
June 28, 2021

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Standard Life to sell 7 crore shares of HDFC Life Insurance via block deals

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Standard Life is looking to sell seven crore shares, or 3.46 per cent, in HDFC Life Insurance. This will be through block deals on June 29. The price range has been fixed at ₹658-678 a share. At the lower end of the price range, the base offer size would amount to ₹4,606 crore. JP Morgan India and BoFA Securities India are the joint book runners. As on March 31, 2021, Standard Life held 17.95 crore shares amounting to 8.88 per cent in HDFC Life Insurance. HDFC Life stock closed at ₹696 a piece on the BSE on Monday.

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AMC space will see innovation and growth: Satish Ramanathan from JM Financial Asset Management

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Asset Management Companies (AMCs) will continue to grow regardless of the blip in the economy as they offer a variety of products for savers and are economical with high governance standards. With interest rates at record low, investors will have to re-deploy savings in other products such as equities, international equities, multi-asset products and precious metals, among others.

Mutual funds will remain the first port of call for investors for diversifying their portfolios, according to Satish Ramanathan, Managing Director and Chief Investment Officer–Equity at JM Financial Asset Management. Excerpts:

How did the second wave of Covid-19 impact Indian economy and financial markets?

We believe that the second wave would have had a higher impact in rural India and consumption recovery may not be as quick as last year. Manufacturing sector was less impacted in the first wave as compared to now. Also, many States have developed their own protocols, delaying the recovery process.

Textiles, auto-ancillary and some of the export-oriented industries have been affected, while the IT sector has been less impacted. IIP has declined sequentially by 13 per cent in April 2021. We expect sequential contraction to continue into May as well, and some stabilisation in June. Similarly, diesel sales—a barometer of economic activity— has also declined by 20 per cent sequentially in May 2021.

Given the unevenness in recovery, which are the sectors that you expect to jump back to normalcy?

In calendar year 2020, it was consumption that rebounded and this time we expect US-based export businesses to pick-up. The US and Europe are likely to enjoy the benefits of a recovery due to mass vaccination drives. Consequently, we expect industries such as IT to do well and manufacturing in segments such as home textiles among others to pick up. Agriculture is also doing well and will continue to do so on the back of a good monsoon expected this year.

Do you see a churn in the AMC space?

The AMC space will see innovation and growth. Individual participants may have their own reasons to enter or exit the space. The penetration of mutual funds is still limited and it will take time as a new set of investors (younger entrants into the workforce) start deploying their savings.

With bank deposit rates at levels below inflation, investors will accept more risk for additional return and we sense mutual funds with a professional management at the helm could fill in the gap. There may be shifts within the mutual fund space – exchange traded funds (ETFs) and offshore funds among others, but all in all, we remain optimistic about this category of savings.

We (JM Financial Asset Management) are exploring several innovative strategies for investors in both equity and debt formats. Some of the options include sectoral funds and global funds.

Which strategy would you suggest — ‘chasing a winning stock’ or ‘building a winning portfolio’?

Our stock-picking strategy is to look at the fundamentals of a business and determine the suitability of the company in our portfolio. The business should be sustainable, grow organically, generate adequate cash flows to repay debt, pay dividends, grow the business and also be fairly valued.

We do not really bind ourselves to whether the stock has performed earlier when it comes to our decision to buy or not. From our point of view, we focus on building a winning portfolio. Focussing on the basics really helps in filtering the noise so prevalent in the market.

We have noticed that there are several new businesses which have grown in the past decade. Some of them have had staggering profit growth –be they in water pipes or NBFCs. Our focus has always been to identify these businesses early and grow with them.

Will the ESG concept have an increasing role in the investment decisions of fund managers in times to come as is seen in the developed markets?

We believe that ESG will become intrinsic to our stock-selection process. We need to bear in mind that India does not have the luxury of the developed world when it comes to the environment aspect. We need hard commodities to build our infrastructure which may not be environment-friendly. So, do we stop building our infrastructure? This is a question that we need to answer along the way.

Fortunately, as investors, we have the choice to move to the services sector which is highly compliant as regards ESG. Over the medium term, ESG-compliant companies are more sustainable and also result in superior performance.

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Reserve Bank of India – Press Releases

Press Releases

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The Financial Action Task Force (FATF), vide public document ‘High-Risk Jurisdictions subject to a Call for Action’ dated June 25, 2021, has called on its members and other jurisdictions to refer to the statement on these jurisdictions adopted in February 2020.

FATF had earlier identified the following jurisdictions as having strategic deficiencies which have developed an action plan with the FATF to deal with them. These jurisdictions are: Albania, Barbados, Botswana, Cambodia, Cayman Islands, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Senegal, Syria, Uganda, Yemen and Zimbabwe. As per the public statement, Haiti, Malta, Philippines, and South Sudan have now been added to the list of Jurisdiction under increased Monitoring based on the decision made at the June 2021 FATF plenary. FATF plenary releases documents titled “High-Risk jurisdictions subject to a Call for Action” and “Jurisdictions under increased Monitoring” with respect to jurisdictions that have strategic AML/CFT deficiencies as a part of the ongoing efforts to identify and work with jurisdictions with strategic Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) deficiencies. Such advice does not preclude the regulated entities from legitimate trade and business transactions with the countries and jurisdictions mentioned there.

The detailed information is available in the updated public statements and document released by FATF on June 25, 2021. The statements and document can be accessed at the following URL:

  1. http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-june-2021.html

  2. https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/call-for-action-june-2021.html

  3. https://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-fatf-plenary-june-2021.html

About FATF

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. The FATF’s decision making body, the FATF Plenary, meets three times a year and updates these statements, which may be noted.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/438

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KVG Bank targets ₹31,000 crore business for 2021-22

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Karnataka Vikas Grameen Bank (KVGB), a regional rural bank headquartered in Dharwad, is targeting a business of ₹31,000 crore for 2021-22.

Addressing a virtual media conference on Monday, P Gopikrishna, Chairman of the bank, said the bank reached a business level of ₹27,818 crore during 2020-21 as against ₹26,268.81 crore in the previous fiscal, recording a growth of 5.9 per cent.

Stating that this growth is well comparable with growth percentage of other banks, he said more thrust will be given to agriculture, MSME (micro, small and medium enterprises), retail lending during the year.

The bank is targeting a deposit of ₹17,500 crore and advances of ₹13,500 crore during the year.

He said KVGB, which has registered an operating profit of ₹124.89 crore in this adverse situation, has emerged stronger with its focus on rural development, agriculture, MSME and digitalisation initiatives.

The bank registered an operating profit of ₹124.89 crore in 2020-21 as against an operating loss of ₹179.90 crore during 2019-20.

Gross income of the bank increased to ₹1,589.53 crore (₹1,492.84 crore), and the total expenditure came down to ₹1,583.03 crore (₹2,097.80 crore).

After making a provision of ₹118.39 crore towards tax and other provisions, the bank recorded a net profit of ₹6.50 crore for 2020-21.

He said increase in the NPA (non-performing assets) and creation of pension fund as per the Supreme Court orders attracted higher provisioning.

He said that the outbreak of Covid pandemic and continuous drought for the last five-six years adversely affected the recovery efforts of the bank.

In spite of unfavourable climatic conditions, the bank curtailed its net NPA to 9.22 per cent with an outstanding cash recovery of ₹1,007.37 crore during the year, Gopikrishna said.

KVGB has jurisdiction over Dharwad, Haveri, Gadag, Vijayapura, Bagalkot, Belagavi, Uttara Kannada, Udupi and Dakshina Kannada districts of Karnataka.

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Reserve Bank of India – Tenders

Tenders

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Reserve Bank of India, Kanpur invites e-tender for ‘Renovation (Civil & Interior) of Foreign Exchange Department (FED) at 2nd floor, MOB, RBI Kanpur’ The e-tendering shall be done through the e-tendering portal of MSTC Ltd (http://mstcecommerce.com/eprochome/rbi). All eligible and interested companies / agencies / firms must register themselves with MSTC Ltd through the above-mentioned website to participate in the e-tendering process. The Schedule of e-tender is as follows:

E-Tender No. RBI/Kanpur/Estate/5/21-22/ET/5
a) Estimated cost ₹ 15,40,869/- (Rupees Fifteen Lacs Forty Thousand Eight Hundred Sixty-Nine only) (Including GST @18%)
b) Mode of e-tender e-Procurement System (Online Part I – Techno-Commercial Bid and Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi)
c) Type of e-tender Limited (Only for firms empaneled with RBI, Kanpur under greater than 10 Lakh and upto 50 Lakh category of Civil Works)
d) Date of NIT available to parties to download June 28, 2021 from 05.00 PM
e) Pre-bid meeting (Offline) AUGUST 11, 2021 at 11.30 AM
Venue: Estate Department, 2nd Floor, Reserve Bank of India, Mall Road, Kanpur, Uttar Pradesh-208001
f) EMD through NEFT and upload the details on the MSTC portal. Also, intimate / forward the transaction details (UTR number) to brijesh@rbi.org.in and / or estatekanpur@rbi.org.in ₹ 30,818/- (Rupees Thirty Thousand Eight Hundred Eighteen only) paid through NEFT / Net banking to A/c No. 186003001, IFSC RBIS0KNPA01 (See Annexure- V)
g) E-Tender Fees NIL
h) Date of Starting of e-tender for submission of on-line Techno-Commercial Bid and price Bid at http://mstcecommerce.com/eprochome/rbi AUGUST 11, 2021 from 01.00 PM
i) Last date of submission of EMD AUGUST 23, 2021 till 01.00 PM
j) Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid. AUGUST 23, 2021 till 01.00 PM
k) Date & time of opening of Part-I (i.e. Techno-Commercial Bid)

Date of opening of Part II i.e. price bid shall be informed separately

AUGUST 23, 2021 from 03.30 PM
l) Validity of the e-tender 90 days from the date of opening of Techno– Commercial bid
m) Transaction Fee (Non-refundable) (To be paid separately by the tenderers to MSTC vide MSTC E-Payment Gateway for participating in the e-tender) ₹ 1,180/- (incl. GST @18%)

2. Intending tenderers shall pay a sum of ₹ 30,818/- (Rupees Thirty Thousand Eight Hundred Eighteen only) as earnest money through NEFT to Reserve Bank of India, Kanpur.

3. Applicants intending to apply will have to satisfy the Bank by furnishing documentary evidence in support of their possessing required eligibility and in the event of their failure to do so, the Bank reserves the right to reject their bids. E-tenders without EMD will not be accepted under any circumstances.

4. The Bank is not bound to accept the lowest tender and reserves the right to accept either in full or in part any tender. The Bank also reserves the right to reject all the tenders without assigning any reason thereof.

5. Any amendments / corrigendum to the tender, if any, issued in future will only be notified on the RBI Website and MSTC Website as given above and will not be published in the newspaper.

Regional Director
Reserve Bank of India
Kanpur

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Co-operative banks must put in place an outsourcing policy: RBI

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The Reserve Bank of India (RBI), on Monday, asked co-operative banks to ensure that their outsourcing arrangements do not diminish their ability to fulfil their obligations to customers and the RBI.

Further, such arrangements should not impede effective supervision by the RBI/ National Bank for Agriculture and Development (NABARD).

“Co-operative banks, therefore, have to take steps to ensure that the service provider employs the same high standard of care in performing the services as would be employed by them, if the activities were conducted by the banks and not outsourced,” said the RBI in its ‘Guidelines for Managing Risk in Outsourcing of Financial Services by Co-operative Banks’.

Accordingly, co-operative banks should not engage in outsourcing that will result in their internal control, business conduct or reputation being compromised or weakened.

Outsourcing policy

The guidelines require a co-operative bank intending to outsource any of its financial activities to put in place a comprehensive outsourcing policy approved by its board.

This policy should incorporate, inter alia, criteria for selection of such activities as well as service providers, parameters for defining material outsourcing, delegation of authority depending on risks and materiality, and systems to monitor and review the operations of these activities.

The RBI said the outsourcing of any activity by a co-operative bank does not diminish its obligations, and those of its board and CEO along with the management, who have the ultimate responsibility for the outsourced activity.

Co-operative banks shall, therefore, be responsible for the actions of their service provider including actions of the Business Correspondents and their retail outlets / sub-agents and the confidentiality of information pertaining to the customers that is available with the service provider. The bank shall retain ultimate control of the outsourced activity.

Financial services

“These guidelines are concerned with managing risks in outsourcing of financial services…Co-operative banks which desire to outsource would not require prior approval from the RBI / NABARD. However, such arrangements would be subject to on-site / off-site monitoring and inspection/scrutiny by the RBI / NABARD,” said the circular.

The RBI emphasised that co-operative banks that choose to outsource financial services, however, should not outsource core management functions, including policy formulation, internal audit and compliance, compliance with KYC norms, credit sanction, and management of investment portfolio.

However, where required, experts, including former employees, could be hired on a contractual basis subject to the Audit Committee of Board/Board being assured that such expertise does not exist within the audit function of the bank.

Any conflict of interest in such matters shall be recognised and effectively addressed. Ownership of audit reports in all cases shall rest with regular functionaries of the internal audit function.

During inspections/ scrutinies, the RBI / NABARD will review the implementation of these guidelines to assess the quality of related risk management systems particularly in respect of material outsourcing.

Material outsourcing

Material outsourcing arrangements are those, which, if disrupted, have the potential to significantly impact the business operations, reputation or profitability of co-operative banks

The central bank said the grievance redressal mechanism of co-operative banks should not be compromised on account of outsourcing.

Outsourcing arrangements shall not affect the rights of a customer against the co-operative bank, including the ability of the customers to redress their grievances as applicable under relevant laws.

While it is entirely the banks’ prerogative to take a view on the desirability of outsourcing a permissible activity having regard to all relevant factors, including the commercial aspects of the decision, such outsourcing results in banks being exposed to various risks, cautioned RBI.

Co-operative banks have to evaluate various risks such as strategic, reputation, compliance, operational, legal, exit strategy, and concentration and systemic in outsourcing.

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Credit guarantee scheme for facilitating MFIs loans announced, BFSI News, ET BFSI

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New Delhi, The government on Monday announced a new credit guarantee scheme that will facilitate loans to 25 lakh people through micro finance institutions (MFIs).

The announcement was made by Finance Minister Nirmala Sitharaman as part of economic relief package provided to spur investment climate in the country affected by the Covid pandemic.

As per the new scheme, guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs or MFIs for on lending up to Rs 1.25 lakh to approximately 25 lakh small borrowers.

Interest Rate on Loans from banks will be capped at MCLR plus 2 per cent.

Maximum loan tenure 3 years, 80 per cent of assistance to be used by MFI for incremental lending, interest at least 2 per cent below maximum rate prescribed by RBI.

The focus of the scheme will that lending would be for new activities and not repayment of old loans. Loans to borrowers to be in line with extant RBI guidelines such as number of lenders, borrower to be member of JLG, ceiling on household income and debt.

All borrowers (including defaulters upto 89 days) will be eligible for guarantee cover for funding provided by MLIs to MFIs/NBFC-MFIs till March 31, 2022 or till guarantees for an amount of Rs 7,500 crore are issued, whichever is earlier.

Guarantee upto 75 per cent of default amount for up to 3 years through National Credit Guarantee Trustee Company (NCGTC) which will also not charge any guarantee fee.

–IANS

sn/kr



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‘Urgent need to fast-track insurance penetration’

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The fear of the pandemic may have accelerated purchase of health insurance and life cover among the public, but India still has miles to go in increasing overall insurance penetration and building awareness of its benefits, according to the CEOs of private life insurers and intermediaries.

On the occasion of the National Insurance Awareness Day (June 28), most of them felt that there is a need to fast-track insurance penetration, given that only 3 per cent of the population are covered under life insurance. One may have to take a leaf out of India’s vaccination drive and get insurance penetration levels up on a mission mode, they added.

Naveen Tahilyani, Chief Executive Officer and Managing Director, Tata AIA Life Insurance, said: “The Covid-19 pandemic has underlined the need for life insurance more emphatically than ever before. With only 3 per cent of the population covered under life insurance, clearly there is an urgent need to fast-track insurance penetration in the country.

“This National Insurance Day, let us, as an industry, pledge to bring more of the country’s population under life insurance protection cover and secure the future of their families and loved ones.”

‘Land of savers’

Prashant Tripathy, MD& CEO, Max Life Insurance, told BusinessLine that despite a gradual increase in insurance penetration in the country over the last couple of years, India predominantly remains the land of savers over land of protectors. “Consumers need to be educated on the role life insurance plays in the long-term financial protection and aspects like the right sum assured that can affect the accomplishment of life goals of their loved ones in their absence. By offering a range of innovative and flexible products combined with the digital first approach in all our processes, our focus is steadfastly aligned with customer expectations. We believe the digital approach will help enhance penetration, deliver on superior customer experience and harness the trust of the customer,” he said.

‘Grave economic crisis’

Mahesh Balasubramanian, MD & CEO, Kotak Mahindra Life Insurance, said that the pandemic has infected more than three crore lives and witnessed the death of close to four lakh people, thus plunging the nation into a state of health and economic crisis.

“It has also caused huge financial stress to victims and survivors. This calamity has shown the need for financial protection more than ever before. We, as a nation, must commit ourselves to protect our people by increasing both penetration and density of term and health insurance,” he said. Sarbvir Singh, CEO, Policybazaar.com, said: “During unprecedented times like these, it is important to understand our customer’s outlook towards insurance products and serve them with the right solutions specific to their needs.

“A well-insured nation is always better equipped to deal with economic uncertainties. The pandemic has definitely accelerated awareness around insurance and the quest to buy the right insurance plans.”

Parag Raja, MD & CEO, Bharti AXA Life Insurance, said that the current environment and its impact on economy has not only made people conscious about their security in terms of health, life and future, but also made them aware of the risks of not having a life cover.

“Therefore, we will further enhance our digital model to provide seamless customer service, along with a robust claims management system that ensures customer satisfaction especially in such dire situations,” he said.

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Reserve Bank of India – Press Releases

Press Releases

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Government of India (GOI) has announced the sale (re-issue) of four dated securities for a notified amount of ₹32,000 crore as per the following details:

Sr No Security Date of Repayment Notified Amount
(₹ crore)		 GoI specific Notification Auction Date Settlement Date
1 5.63% GS 2026 April 12, 2026 11,000 F.No.4(3)-B(W&M)/2021 dated June 28, 2021 July 02, 2021
(Friday)		 July 05, 2021
(Monday)
2 GoI FRB 2033 * September 22, 2033 4,000
3 6.64% GS 2035 June 16, 2035 10,000
4 6.67% GS 2050 December 17, 2050 7,000
  Total   32,000      
*The base rate for the coupon payment for the period ending September 21, 2021 shall be 3.48 per cent per annum.

2. GoI will have the option to retain additional subscription up to ₹8,000 crore against above security/securities.

3. The securities will be sold through Reserve Bank of India Mumbai Office, Fort, Mumbai – 400001, The sale will be subject to the terms and conditions spelt out in the ‘Specific Notification’ mentioned above and the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018.

4. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 02, 2021. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. The result will be announced on the same day and payment by successful bidders will have to be made on July 05, 2021 (Monday).

5. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 9.00 a.m. up to 9.30 a.m. on July 02, 2021 (Friday) on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

6. The Stocks will be eligible for “When Issued” trading for a period commencing June 29, 2021 – July 02, 2021.

7. Operational guidelines for Government of India dated securities auction and other details are given in the Annex.

Ajit Prasad
Director   

Press Release: 2021-2022/437

ANNEX

Type of Auction

1. The auction will be a multiple price-based auction i.e. successful bids will get accepted at their respective quoted price for the security.

2. The auction will be yield based for new security and price based for securities which are re-issued.

3. In case of a Floating Rate Bonds (FRB), the auction will be spread-based for new security and price based for securities which are reissued. At the time of placing bids for new FRB, the spread should be quoted in percentage terms.

Minimum Bid Size

4. The Stocks will be issued for a minimum amount of ₹10,000/- (nominal) and in multiples of ₹10,000/- thereafter.

Non-Competitive Segment

5. In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.

6. Each bank or Primary Dealer (PD) on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

7. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price of the successful bids that will emerge in the auction on the basis of the competitive bidding.

Submission of Bids

8. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

9. Bids in physical form will not be accepted except in extraordinary circumstances.

Business Continuity Plan (BCP)-IT failure

10. Only in the event of system failure, physical bids will be accepted. Such physical bids should be submitted to the Public Debt Office, Mumbai through (email; Phone no: 022-22632527, 022-22701299) in the prescribed form which can be obtained from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends.

11. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595666, 022-27595415, 022-27523516).

12. For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Multiple Bids

13. An investor can submit more than one competitive bid in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

14. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

Decision Making Process

15. On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions.

16. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected.

17. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

Issue of Securities

18. Issue of securities to the successful bidders will be by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate.

Periodicity of Interest Payment

19. Interest on the Government Stock will generally be paid half-yearly other than in case of securities with non-standard maturities. The exact periodicity of coupon payment is invariably mentioned in the specific notification for the issue of security.

Underwriting of the Government Securities

20. The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007 as amended from time to time.

Eligibility for Repurchase Transactions (Repo)

21. The Stocks will eligible for Repurchase Transactions (Repo) as per the conditions mentioned in Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 (Reserve Bank) Directions, 2018 as amended from time to time.

Eligibility for ‘When Issued’ Trading

22. The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Investment by Non-Residents

23. Investments by Non-Residents are subject to the guidelines on ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities and Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF).

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