To,
Finance Secretaries of the State Government
Dear Sirs,
Extension of the Scheme of Non-Competitive
Bidding Facility to 182-Day Treasury Bills
The Reserve Bank in consultation with the Government
of India has decided to re-introduce 182-Day Treasury Bills from the fiscal
year 2005-06. The first auction of 182-Day Treasury Bills will be conducted
on April 6, 2005 and subsequent auctions on a fortnightly basis on Wednesdays
preceding the non-Reporting Fridays with payment on non-Reporting Fridays. In
this connection, we enclose a copy of the Press Release of the calendar for
auctions of Government of India Treasury Bills for the period from April 1,
2005 to March 31, 2006, for your information.
2. Presently, State Governments are permitted
to bid on non-competitive basis for Treasury Bills of maturities of 91 day and
364 day. It has since been decided to allow State Governments to bid for 182–Day
Treasury Bills also on non-competitive basis. Investment by State Governments
in the above Treasury Bills will also be reckoned as eligible security for the
purpose of availing of Special WMA facility. The contents of this letter will
come into effect forthwith.
Please acknowledge receipt.
Yours faithfully
(R. Sebastian)
General Manager