In the January- March quarter of 2025, the Reserve Bank of India proposed selling government bonds worth Rs. 4.73 crore to State Governments and Union territories. The central bank declared that the auction schedule will be held throughout the January- March quarter together with the names of states and Union territories that have confirmed participation.

Government Securities or bonds are financial instruments issued by the State or Central Government. It is also known as a tradeable instrument to borrow money from the public. It means investors can buy these securities from the government and sell them in the secondary market.

The Reserve Bank of India reports that the confirmed amount of borrowings along with State and UTs participating details will be issued two to three days before the auction depending on the requirements of State Government acceptance from the Indian Government Under Article 293(3) of the Indian Constitution and market condition.

With State Government and UTs, RBI reserves the right to change the amount of auction and dates. The RBI aims to conduct the auction in a non-disruptive manner to manage the borrowing process of Union Territories and State Governments that ensures market stability and efficiency. The Reserve Bank of India conducts auctions of Government Securities in the market, which draws involvement from international and national investors like banks, insurance companies, and pension funds.