RBI to buy back inflation indexed bonds which will mature in 2023
Q. RBI will purchase back indexed bonds maturing in which year?- Published on 08 Feb 16
Reserve Bank of India said the government will buy back inflation indexed bonds/IIBs maturing in 2023 via reverse auction in February 11th. Not so effective bonds have received a below par response due to lack of marketing and associated tax issues. GoI has also notified repurchase of 1.44 percent inflation indexed government stock 2023 via a reverse auction for total amount of INR 6500 crore. Bonds were launched as alternative to gold as an investment in high current account deficit. Repurchase will be prematurely held to redeem government stock through utilization of surplus cash balance and it was an ad-hoc move.