PUDUCHERRY: The Territorial government has once again decided to borrow `125 crore more from the market through an auction to be conducted by the Reserve Bank of India (RBI) in Mumbai on November 24. This is the fourth market borrowing this financial year.
According to an official press release, the government announced the sale of 10-year security in the form of stock to the public by auction for `125 crore.
The securities would be issued for a minimum nominal amount of `10,000 and in multiples of `10,000 thereafter.
Auction would be conducted by the RBI, Fort, Mumbai, on Tuesday (November 24).
According to the release, interested persons, firms, corporate bodies, institutions, provident fund, trusts, regional rural banks and co-operative banks could submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) available on the website www.rbi.org.in on November 24, between 10.30 am and 11.30 am.
The competitive bids shall be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) between 10.30 am and 12 pm the same day.
The result of auction would be displayed by Reserve Bank of India, Mumbai, on the same day on the website. Successful bidders should deposit the price amount of the stock covered by their bids by means of a banker’s cheque or demand draft payable at RBI, Mumbai (Fort), or Chennai on November 26, before the close of banking hours.
The government would bear interest at the rate determined by the RBI at the auction. Interest would be paid on May 26 and November 26 for every financial year until repayment.
The market borrowing has drawn flak from the opposition parties like Congress, which said the borrowing exposed the Union Territory’s financial crunch.