The Reserve Bank of India has announced a change in Government securities auction methodology for benchmark securities. They noted in the latest update that on a review of market conditions and market borrowing program of the government, it has been decided that benchmark securities of tenor 2-year, 3-year, 5-year, 10-year, 14-year tenor and Floating Rate Bonds (FRBs) will be, henceforth, issued using the uniform price auction method.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
For other benchmark securities i.e. 30-year and 40-year, the auction will continue to be multiple price-based auctions, as hitherto. The above arrangement will continue till further review, note the bank.
About the Uniform Price auction:
In a Uniform Price auction, all the successful bidders are required to pay for the allotted quantity of securities at the same rate, i.e., at the auction cut-off rate, irrespective of the rate quoted by them.
About the Multiple Price auction:
In a Multiple Price auction, the successful bidders are required to pay for the allotted quantity of securities at the respective price/yield at which they have bid.
Important takeaways for all competitive exams:
Weekly Current Affairs One-Liners Current Affairs 2026 plays a very important role in competitive examinations…
Valleys are low areas of land that lie between hills or mountains. They are formed…
Sandwiches are one of the most popular foods in the world. They are simple, quick…
The Government of India has appointed Rohit Jain as the Deputy Governor of the Reserve…
The Government of India has notified the Citizenship (Amendment) Rules, 2026 and introduced the important…
The Reserve Bank of India have announced that 98.47% of ₹2,000 Indian currency notes have…