RBI dated securities to raise additional Rs 1,10,000 crore

Following revision in the market borrowing requirement of the government announced in the regular Budget for the fiscal 2009-10,it has become necessary for the government to raise additional resources, the Rserve Bank of India said on Thursday.

Accordingly, Centre in consultation with the RBI has decided to issue a new issuance calendar for marketable dated securities.

The central bank has issued an indicative calendar for issue of the dated securities covering the period from July 18, to September 30, 2009 to the tune of Rs 1,10 ,000 crore composed securities ranging from 5-20 years.

Also on a review of the cash position of the centre, the RBI, has decided to rollover the maturing amount of treasury bills till September 30.

The notified amounts for the auction of the T-Bills for the period July 22, to September 30, 2009 will the tune of Rs 75,500 crore.

The RBI has said both RBI andCentral government will continue to have the flexibility to modify the notified amount and timing for auction of T-bills keeping in view the emerging requirements of the government, market conditions and other relevant factors.

During the current fiscal year so far, the RBI has purchased government securities amounting to Rs 29,850 crore through open market operation (OMO) auctions as against the aggregate notified amount of Rs 43,500 crore.

Over the same period, market stabilisaion scheme (MSS) unwinding has been of the order of Rs 65,500 crore (comprising Rs 37,500 crore of redemption and Rs 28,000 crore of de-sequestering). MSS redemptions of Rs 4,500 crore are due in the remaining part of the first half of the current fiscal year.

It may be recalled that on March 26, 2009, the RBI had announced its intention to purchase an indicative amount of Rs 80,000 crore under its open market operations during the first half (April-September) of 2009-10.

RBI will have the flexibility to make changes in the amount of OMO and alter frequency and day of auction as may be necessary.

Banking system liquidity has been comfortable during the current fiscal year so far with the daily absorption under the reverse repo window of LAF exceeding Rs 1,00,000 crore on almost all days.

Going forward, the RBI on its part would continue to maintain ample liquidity in the system. In this context, the OMO purchase programme (announced on March 26, 2009) would also be continued over the remaining period of the first half of the current fiscal year (April ? September 2009) with auctions conducted every alternate week.