Categories: Banking

Govt of India has done a Switch Operation of Rs. 1,19,701 crores

The Government of India has done a conversion switch transaction of its securities with the Reserve Bank of India (RBI) for an amount of 1,19,701 crores (face value). The transaction involved buying back securities that are being matured in FY 2022-23, FY 2023-24 and FY 2024-25 from the RBI and also issuing fresh securities for equivalent market value, to make the transaction cash neutral.

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The transactions were carried out using Financial Benchmarks India Private Limited (FBIL) prices as of January 28, 2022. The GOI undertakes switch operations with RBI and also with market participants to smoothen the liability profile as well as for market development.

Government securities:

They are the debt instruments. They are issued by GoI. The two categories of government securities are short term instruments that mature in 91 days, 182 days or 364 days and long term instrument that matures within 5 years to 40 years. The securities are cleared by the clearing Corporation of India Limited. These securities are issued through auctions conducted by RBI.

Current affairs 2022

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.