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Auction of Government of India Dated Securities



Auction of Government of India Dated Securities
RBI/2015-16/375
Ref.No.IDMD/2353/08.02.032/2015-16
April 18, 2016
All Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers.
Dear Sir/Madam,
Auction of Government of India Dated Securities

Government of India has offered to sell (re-issue) four dated securities for notified amount of Rs 15,000 crore as per the following details:
Sr No
Security
Notified Amount (in Rs crore)
GoI Notification
Auction Date
Settlement date
1
3,000
4(3)-W&M/2016 dated
April 18, 2016
April 22, 2016
(Friday)
April 25, 2016
(Monday)
2
8,000
4(3)-W&M/2016(i) dated
April 18, 2016
3
2,000
4(3)W&M/2016(ii) dated
April 18, 2016.
4
2,000
4(3)-W&M/2016(iii) dated
April 18, 2016
The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notifications (copies enclosed), which should be read along with the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
2. We wish to draw your attention, in particular, to the following:
(i) The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs 10,000/- thereafter.
(ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.
(iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2016. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
(iv) An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.
(v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.
(vi) The result of the auctions will be announced on April 22, 2016 and payment by successful bidders will be on April 25, 2016 (Monday).
(vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.
(viii) The Government Stocks will be repaid at par on December 15, 2023; January 11 2026; December 19, 2034; June 22, 2045; respectively.
(ix) The Stocks will qualify for the ready forward facility.
(x) The Stocks will be eligible for “When Issued” trading during the period April 20-22, 2016 in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No.RBI /2006-07/178 dated November 16, 2006 as amended from time to time.
Yours faithfully
(P K Pati)
General Manager


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Auction for Sale (Re-issue) of 7.68 per cent Government Stock 2023
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.68 per cent Government Stock 2023
F. No.4 (3)-W&M/2016: Government of India hereby notifies sale of 7.68 per cent Government Stock 2023’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 3,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of ‘8 year, 7 months and 19 days” tenure commencing from April 27, 2015. The Stock will be repaid at par on December 15, 2023.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on April 22, 2016. The payment by successful bidders will be on April 25, 2015. i.e .the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e December 15, 2015 to April 24, 2016.
Interest
8. Interest at the rate of 7.68 per cent per annum will accrue on the nominal value of the Stock from date of last coupon payment and will be paid half-yearly onJune 15 and December 15.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India

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Auction for Sale (Re-issue) of 7.59 per cent Government Stock 2026
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.59 per cent Government Stock 2026
F. No.4 (3) W&M/2016(i): Government of India hereby notifies sale (re-issue) of 7.59 per cent Government Stock 2026 for an aggregate amount of ₹ 8,000 crore(nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of ’10 year’ tenure commencing from January 11, 2016. The Stock will be repaid at par on January 11, 2026.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on April 22, 2016. The payment by successful bidders will be on April 25, 2016 i.e. the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue i.e January 11, 2016 to April 24, 2016.
Interest
8. Interest at the rate of 7.59 per cent per annum will accrue on the nominal value of the Stock from the date of original issue and will be paid half-yearly on July 11 and January 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India

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Auction for Sale (Re-issue) of 7.73 per cent Government Stock 2034
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.73 per cent Government Stock 2034
F. No.4 (3) W&M/2016(ii):Government of India hereby notifies sale (re-issue) of ‘7.73 per cent Government Stock 2034’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 2,000 crore (nominal).The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of “19 Years, 2 months and 7 days” tenure commencing from October 12, 2015. The Stock will be repaid at par on December 19, 2034.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on April 22, 2016. The payment by successful bidders will be on April 25, 2016. i.e .the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e December 19, 2015 to April 24, 2016.
Interest
8. Interest at the rate of 7.73 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid on June 19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India

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Auction for Sale (Re-issue) of 8.13 per cent Government Stock 2045
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.13 per cent Government Stock 2045
F. No.4 (2) W&M/2016(iii):Government of India hereby notifies sale of ‘8.13 per cent Government Stock 2045’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 2,000 crore (nominal).The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of thirty years tenure commencing from June 22, 2015. The Stock will be repaid at par on June 22, 2045.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on April 22, 2015. The payment by successful bidders will be on April 25 2016. i.e. the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e. December 22, 2015 to April 24, 2016.
Interest
8. Interest at the rate of 8.13 per cent per annum will accrue on the nominal value of the Stock from the date of original issue and will be paid half yearly on June 22, and December 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of Indiaww

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Provisioning pertaining to Fraud Accounts
RBI/2015-16/376
DBR.No.BP.BC.92/21.04.048/2015-16
April 18, 2016
All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir,
Provisioning pertaining to Fraud Accounts
Please refer to circular DBR.No.BP.BC.83/21.04.048/2014-15 dated April 1, 2015 on the captioned subject. On a review, it has been decided to amend the provisioning norms in respect of all cases of fraud, as under:
  1. Banks should normally provide for the entire amount due to the bank or for which the bank is liable (including in case of deposit accounts), immediately upon a fraud being detected. While computing the provisioning requirement, banks may adjust financial collateral eligible under Basel III Capital Regulations - Capital Charge for Credit Risk (Standardised Approach), if any, available with them with regard to the accounts declared as fraud account;
  2. However, to smoothen the effect of such provisioning on quarterly profit and loss, banks have the option to make the provisions over a period, not exceeding four quarters, commencing from the quarter in which the fraud has been detected;
  3. Where the bank chooses to provide for the fraud over two to four quarters and this results in the full provisioning being made in more than one financial year, banks should debit 'other reserves' [i.e., reserves other than the one created in terms of Section 17(2) of the Banking Regulation Act 1949] by the amount remaining un-provided at the end of the financial year by credit to provisions. However, banks should proportionately reverse the debits to ‘other reserves’ and complete the provisioning by debiting profit and loss account, in the subsequent quarters of the next financial year;
  4. Banks shall make suitable disclosures with regard to number of frauds reported, amount involved in such frauds, quantum of provision made during the year and quantum of unamortised provision debited from ‘other reserves’ as at the end of the year.
4. We reiterate that banks must scrupulously adhere to the extant guidelines on classification and reporting of frauds.
Yours faithfully,
(Sudarshan Sen)
Principal Chief General Manager

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