RBI to execute Rs 600 billion MSS on Dec 7

The bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 3:00 pm and 3:30 pm on Wednesday, December 07, 2016.

RBI to execute Rs 600 billion MSS on Dec 7

The Reserve Bank of India will conduct an auction of 28 days Government of India Cash Management Bills under the Market Stabilisation Scheme (MSS) for an amount of ₹ 600 billion today on December 07, 2016 using "Multiple Price Auction" method.


The bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 3:00 pm and 3:30 pm on Wednesday, December 07, 2016. The result will be announced
today
itself. Payment by successful bidders will be on T+0 i.e. on Wednesday, December 07, 2016.


The Cash Management Bills will have the generic character of Treasury Bills and their sale will be subject to the terms and conditions specified in the General Notification issued on May 26, 2016, by the Central Government and as amended from time to time. The Non-Competitive Bidding Scheme is not extended to Cash Management Bills.


According to the May 2016 notification, the Bills would be issued at a discounted price. In respect of competitive bids, the rate of discount and the corresponding issue price would be determined at each auction. In the case of uniform price auction, competitive bids will be accepted at the minimum discounted price called cut-off price determined at the auction, irrespective of bid prices tendered. In the case of multiple price auction, competitive bids will be accepted up to the minimum discounted price called ‘cut off’ price determined at the auction, at bid prices tendered at the auction. Competitive bids at offer prices lower than the ‘cut-off’ price will be rejected in the case of both uniform and multiple price auctions.


The allocation for ‘non-competitive’ bids will be at the discretion of the Bank. These non-competitive bids will be outside the notified amount. Such allocation for ‘non-competitive’ bids will be at the weighted average price arrived at on the basis of the competitive bids accepted at the auction.


The Bank will have the full discretion to accept or reject any or all the bids either wholly or partially, as deemed fit by it, without assigning any reason.


The Bank may if it considers appropriate to do so participate in the auction as a ‘non-competitor’ and buy bills for part of or the whole of the amount notified at the cut-off price decided in the auction.