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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-26032025-261972
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 91]
NEW DELHI, WEDNESDAY, MARCH 26, 2025/CHAITRA 5, 1947
MINISTRY OF FINANCE
(Department of Economic Affairs)
(BUDGET DIVISION)
GENERAL NOTIFICATION
New Delhi, the 26th March, 2025
Sale and Issue of Government of India Securities (including Treasury Bills and Cash Management Bills)
F. No. 4(2)-B(W&M)/2018.—Government of India, in supersession of the two Notifications, both with
F.No.4(2)-W&M/2018 dated 27th March, 2018 and published in the Gazette of India: Extraordinary [ Part I - SEC 1,
page 4 to 6 and 8 to 13], hereby, notifies the terms and conditions for sale and issuance of Government of India
Securities, including Government of India Treasury Bills and Cash Management Bills (hereinafter collectively referred
to as "Securities").
2. Name and Applicability
(i) This Notification shall be called as the ‘General Notification for Sale and Issue of Government of India
Securities'.
(ii) Sale and issuance of Securities shall be subject to the terms and conditions contained in this Notification and
any other notification that may be issued with respect to creation and issuance of any particular Security
(hereinafter referred to as "Specific Notification").
3. Types of Securities
The Government of India may issue, from time to time, the following types of Securities:
i Treasury Bills of varying maturities with a maximum tenor up to 364 days issued at a discounted price and
redeemed at face value without any periodic coupon payment.
ii Cash Management Bills of varying maturities not exceeding 90 days issued at a discounted price and redeemed
at face value without any periodic coupon payment.
iii Fixed coupon rate Securities
a. Securities carry a specific coupon rate applied to the face value determined at auction or otherwise as
specified in relevant Specific Notification and remaining fixed during the tenor of the Securities.
b. Securities may be issued at a discount, at par or at a premium to the face value.
c. Securities may be issued with original maturity of not less than one year.
d. Securities may be redeemed at face value or as specified in the Specific Notification.
iv Floating coupon rate Securities, e.g., Floating Rate Bonds (FRBs), Inflation Linked Bonds, etc.
a. Securities carry a floating coupon rate which will be reset periodically according to the change in the
reference rate to which it is linked and the periodicity at which coupon is reset will be as per the Specific
Notification.
b. Securities may be issued at a discount, at par or at a premium to the face value.
c. Coupon rate may be subject to a floor or cap, if any, as prescribed in the Specific Notification.
d. Securities may be issued with original maturity of not less than one year.
e. Securities may be redeemed at face value or as specified in the Specific Notification.
v Zero Coupon Bonds
a. Securities issued with original maturity of not less than one year which are
i. issued at a discounted price and redeemed at face value as per the Specific Notification.
ii. issued at a face value and redeemed at a price as per the Specific Notification.
b. No coupon is paid on such bonds.
vi Securities where either the subscription and/or repayment is received/paid in instalments
a. Securities may carry a fixed or floating coupon rate.
b. Payment for the Securities is received in instalments or the repayment of the Securities is made in
instalments, as per the Specific Notification.
vii Securities with Embedded Options
a. Securities may be issued with embedded options.
b. Securities with 'Call Option' may be repaid at the option of Government of India, before the redemption
date, as per the Specific Notification.
c. Securities with 'Put Option' may be repaid, at the option of the holder of the Security, before the
redemption date, as per the Specific Notification.
d. Securities may be issued with original maturity of not less than one year.
viii Securities with any other feature as per the Specific Notification.
4. General Terms and Conditions applicable to Securities
The general terms and conditions applicable to sale and issuance of all Securities will be as under:
i. Eligible Investors
a. Any person resident in India, including but not limited to firms, companies, corporate bodies, institutions,
State Governments, Union Territories with legislature, provident funds, pension funds, trusts, Hindu
Undivided Family and individuals.
b. Any person resident outside India permitted to invest in Securities in terms of the Foreign Exchange
Management (Debt Instruments) Regulations, 2019 issued under Foreign Exchange Management Act,
1999.
ii. Minimum Subscription
Securities will be issued for a minimum amount of ₹ 10,000 (Face Value) and in multiples of ₹ 10,000
thereafter, or any other amount as specified by the Reserve Bank of India (RBI), in consultation with
Government of India.
iii. Payment
Payment shall be made by the successful Subsidiary General Ledger¹ (SGL)/ Constituents' Subsidiary General
Ledger² (CSGL) account holders on such dates as mentioned in the Specific Notification or as specified by
RBI, by means of an authority to debit their current account with RBI or by Electronic Fund Transfer or any
other means as stipulated by RBI.
iv. Form
Securities shall be issued to the investors by credit to their SGL account or to CSGL account, maintained with
RBI or in such other form as may be permitted under the provisions of the Government Securities Act, 2006.
v. Coupon
a. Coupon on Securities will be paid by the Public Debt Offices (PDOs) of RBI. Coupon on Securities held in
Bond Ledger Account with any of the offices of RBI/ Agency, as specified by RBI in this behalf, will be
paid at such Office/Agency.
b. Coupon will be paid after rounding off the amount to the nearest whole rupee. For this purpose, amount of
coupon less than fifty paise will be ignored and fifty paise or more will be rounded off to the next rupee,
unless specified otherwise.
vi. Repayment
a. Securities will be repaid at Public Debt Offices of RBI or any other institution at which they are registered
at the time of repayment.
b. Securities will be repaid on the date of redemption as specified in the Specific Notification or before their
specified redemption dates in case of exercise of option by option holder in Securities with embedded
options, as the case may be.
c. Securities may be bought back before their specified redemption date, at a price determined through a
buyback auction on any date determined by RBI in consultation with Government of India.
vii. Transferability
a. Securities can be renewed, sub-divided, consolidated, converted or transferred in accordance with the
provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007
framed thereunder, and the terms of this notification and any other notification which may be issued in this
regard.
b. The conversion of security from one form to another will be subject to the conditions as per the Specific
Notification.
c. The transfer of Securities by person resident outside India shall be subject to Regulations framed under
FEMA, 1999 and the Directions issued thereunder, as amended from time to time.
viii. Applicable Laws
a. The rights of all persons subscribing to or holding the Securities shall be determined in accordance with the
Government Securities Act, 2006 and the Government Securities Regulations, 2007, framed thereunder,
read with the terms of this Notification and such other Notification as may be issued from time to time by
RBI, in consultation with the Government of India.
b. The provisions of the tax laws for the time being in force in India will be applicable for the purpose of
assessing and determining the tax liability of the investor or holder of the Securities.
c. Any dispute in relation to the Securities shall be subject to the jurisdiction of the Courts in India.
ix. Procedure of Sale and Issue of Securities
The operational procedure and other details such as date and place of auction, tenor, auction method, etc. for
sale and issue of securities shall be announced by RBI by issue of a press release or through such other means
as may be considered necessary.
5. Modes of issue of Securities
Government of India may issue Securities through following modes:
i. Issue of Securities through auction
a. Securities will be issued through auction, either on yield basis or price basis. Where the issue of the
Securities paying periodic coupon is on yield basis, the coupon is decided in an auction conducted by RBI
in the manner as provided hereinafter or as stated in the specific Notification issued from time to time in
this regard. The Securities carry the same coupon till maturity, except for Floating coupon rate Securities.
Where the issue of the Securities paying periodic coupon is on price basis, the coupon will be pre-
determined.
b. Both competitive and non-competitive bids for the auction should be submitted in electronic format on
RBI's Core Banking Solution or any other platform/ system as decided by RBI. RBI may permit
submission of physical bids under exceptional circumstances.
c. Competitive bidder may submit multiple bids at same/different rates of yield or prices, as the case may be.
The aggregate amount of bids submitted by an applicant in an auction should not exceed the notified
amount.
d. On the basis of the bids received, RBI will determine the maximum rate of yield or the minimum price, as
the case may be, at which bids for purchase of Securities will be accepted at the auction. Maximum rate
of yield determined in a yield based auction for the Securities paying periodic coupon will be the per
annum coupon rate for those Securities.
e. Retail Investors, as specified by RBI, can participate in an auction on 'non-competitive' basis as per the
Scheme of Non-competitive Bidding Facility announced by RBI, in consultation with the Government of
India.
f. RBI, in consultation with the Government of India, may retain additional subscription up to an amount as
may be specified in the 'Specific Notification'.
g. The auction for issue of Securities (yield basis or price basis) can be held as per 'Uniform price' method
or 'Multiple price' method or any other method as decided by RBI, in consultation with Government of
India from time to time.
• Where an auction is held as per ‘Uniform price' method, competitive bids with rates up to and
including the maximum rate of yield or the prices up to and including the minimum bid price, as
determined by RBI, will be accepted at the maximum rate of yield or minimum bid price. Bids
quoted higher than the maximum rate of yield or lower than the minimum price so determined
will be rejected.
• Where an auction is held on 'Multiple price' method, competitive bids up to the maximum rate
of yield or the minimum bid price, as determined by the RBI will be accepted at the respective
bid rate. In yield-based auction, successful bidders, whose quotes are lower than the maximum
rate of yield accepted, are required to pay the price differential. Bids quoted higher than the
maximum rate of yield or lower than the minimum price so determined will be rejected.
h. RBI, in consultation with Government of India, may reject any or all bids either wholly or partially,
without assigning any reason thereof.
ii. Issue of Securities through on tap sale
a. The amount of issuance may be/may not be indicated in the notification in respect of the Securities sold
on tap.
b. Applications duly filled in and complete in all respect should be submitted to the office of RBI or any
other office notified for the purpose, before the close of specified time/banking hours notified by the RBI
on the specified date(s).
c. Sale of such Securities may be extended to whole, or part of the year and the sale may be closed at any
time on any day or as specified by RBI, in consultation with the Government of India.
d. RBI, in consultation with the Government of India, may reject any or all bids either wholly or partially,
without assigning any reason thereof.
iii. Switching/ Issue of new Securities in conversion of existing Securities
a. RBI, in consultation with Government of India, may provide the holders of Securities an option to convert
certain existing Securities into other Securities at specified price or at price as determined in auction.
b. RBI may accept or reject any or all bids either wholly or partially, without assigning any reason thereof.
iv. Any other mode, as may be notified by the Government of India, in consultation with RBI.
6. Participation by Reserve Bank of India
RBI may under exceptional circumstances as mentioned in the Fiscal Responsibility and Budget Management (FRBM)
Act, 2003, as amended from time to time, and the Rules framed thereunder, subscribe to Securities in primary issues or
in other issues, as a non-competitor. Allotment of Securities to RBI will be at the cut off/ weighted average price/yield
emerging in the auction or at a negotiated price/yield decided by the Government of India.
By Order of the President of India,
ASHISH VACHHANI, Addl. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
¹ A Subsidiary General Ledger (SGL) Account shall mean an account opened and held with the RBI for holding
or/and transacting in Government Securities
² CSGL is the SGL account opened and maintained with the RBI by an agent on behalf of the constituents of such
agent