The RBI has deferred auction of Government securities worth ₹15,000 crore citing sufficient liquidity in the system. This would result in decrease in Government market borrowings for 2013-14 to that extent, the RBI said.
The auction has been deferred at a time when the Government coffers are expected to see healthy inflows on account of bids for 2G spectrum auction and Engineers India’s follow-on public offer. “On review of the Government of India’s cash position and funding requirement, it has been decided to cancel the deferred auction scheduled on January 17, 2014, amounting ₹15,000 crore,” the central bank said.
Securities from 2014-15 and 2015-16 maturity buckets for face value of about ₹27,000 crore were switched to longer tenor security with an institutional investor last week, the RBI said.