RBI to resume treasury bill auction from May 3

Mumbai, Apr 27 (UNI) The Reserve Bank of India (RBI) has decided to resume treasury bills auctions under the Market Stabilisation Scheme (MSS) with effect from May 3, 2006, stated a press release issued here today.

This move has been taken following a review of the liquidity conditions, said the release, adding that the issuance of treasury bills under the MSS will be undertaken by increasing the notified amount for regular weekly auctions of 91-day treasury bills by Rs 1,500 crore and those for the fortnightly 182-day and 364-day treasury bills by Rs 1,000 crore each.

The auctions will be conducted in accordance with the annual ceiling for 2006-07 fixed at Rs 70,000 crore by the Union Government the RBI.

Stating that these auctions will continue till further notice, the release added that the Central Bank would retain the flexibility of reviewing the auctions under the MSS from time to time, in response to evolving circmstances.

UNI JJ PP NV2037