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The government, on Friday, announced the conversion/switch of eight Government Securities (G-Secs), maturing between April 2021 and April 2023, through auction for an aggregate amount of ₹23,000 crore (face value) on December 21.
These eight G-Secs will be converted into as many destination G-Secs/ Floating Rate Bonds maturing between August 2032 till December 2060, according to a Reserve Bank of India (RBI) statement.
This conversion/ switch will help the government postpone the redemption pressure at a time when it is set to borrow ₹4.20-lakh crore more in FY21 as pandemic-related expenses for the health and social sectors mount.
The RBI started conducting auction for conversion of G-Secs on the third Monday of every month from April 22, 2019.
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