RBI will sell bonds worth ₹4.73 lakh crore to states and union territories in March quarter, gave this update

The Reserve Bank of India (RBI) will sell government bonds worth Rs 4.73 lakh crore to state governments and union territories in the January-March quarter of 2025. The RBI said in its notification that the auctions to be held during the quarter will run on a weekly schedule.

The central bank said that the actual amount of borrowing and the details of the participating states/union territories will be informed through a press release two / three days before the actual auction day.

The RBI said, "The RBI will try to conduct the auction in a non-disruptive manner keeping in view the market conditions and other relevant factors, and distribute the borrowings evenly during the quarter."

The central bank said that the RBI reserves the right to revise the auction date and amount in consultation with the state governments/UTs. A Government bond/Government security (G-Sec) is a tradable instrument issued by the Central Government or State Governments.

In India, both treasury bills and bonds or dated securities are issued by the Central Government, whereas the state governments issue only bonds or dated securities which are popularly known as state development loans (SDL).