COMPETITIVE · REGULATORY · INDIA
RBI rejects all bids at treasury-bill auction
Change
The Reserve Bank of India rejected all bids at its treasury-bill auction on March 25, 2026.
Why it matters
The RBI rejected all bids submitted at the treasury-bill auction, so no 91‑day/182‑day T‑bills were sold. Bids were placed with cut-off yields about 5–10 basis points higher than previous auctions amid tight banking-system liquidity. The rejection prevents the government from raising short-term funds through this scheduled auction. This is the second instance of bid rejection in just over 13 months, the prior occurrence being February 21, 2025.
Implications
- · Planned T‑bill supply from this auction is not issued, reducing the immediate availability of short-term government paper.
- · Banks, primary dealers, and institutional investors cannot acquire short-term treasury bills through this auction, constraining immediate cash-management and short-duration investment options.
- · The government will not receive proceeds from this scheduled auction, deferring that source of short-term financing.
Who is affected
- · Banks
- · Investors
Source
Topics
Business & Markets Markets Finance & Banking Banking Regulation Capital Markets