Fair Lending
The government’s proposal to clamp down on unauthorised private lending practices signals a decisive move to tackle unregulated financial activities that have long preyed on vulnerable segments of the population.
The Finance Ministry on Monday announced the sale of Government bonds worth Rs 28,000 crore scheduled for Friday (May 3) in three lots through a price-based auction using the multiple price method.
The first lot comprises “7.33 per cent Government Security 2026” worth Rs 6,000 crore while the second lot consists of “7.23 per cent Government Security 2039” for an amount of Rs 10,000 crore and the third lot comprises “7.34 per cent Government Security 2064” worth Rs 12,000 crore.
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The government will have the option to retain an additional subscription up to Rs 2,000 crore against each security.
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The auctions will be conducted by the Reserve Bank of India in Mumbai.
Up to 5 per cent of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the auction of Government securities.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the RBI’s Core Banking Solution (E-Kuber) system on May 3, 2024.
The non-competitive bids should be submitted between 10.30 a.m. and 11 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m., the Finance Ministry said.
The result of the auctions will be announced on May 3 and payment by successful bidders will be on May 6 024 (Monday).
The securities will be eligible for “When Issued” trading in accordance with the RBI guidelines.
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