RBI to sell Rs 1,000 cr inflation indexed bonds on 26 Nov

Mumbai: The Reserve Bank today said it will sell inflation-indexed bonds worth Rs 1,000 crore through price-based auction on 26 November.

Interest at the rate of 1.44 percent per annum will accrue on the indexed principal value of the bonds from the date of original issue and will be paid half yearly on 5 December and 5 June, RBI said in a release. [caption id="attachment_1244773" align="alignleft" width="380"] The RBI logo. Reuters[/caption]

The RBI would allot up to 20 percent of the notified amount of the bonds to eligible individuals and institutions as per the scheme for non-competitive bidding facility.

This is the second round of inflation bonds, after the maiden offering in June.

The bids for the auction should be submitted in electronic format on RBI's core banking solution on 26 November, the release said.

The central bank will announce result of the auctions on 26 November and payment by successful bidders will be on 27 November, it added.

PTI