The Monitoring Group on Cash and Debt Management met today in New Delhi. The cash position and market borrowing of the Government was reviewed. It has been decided that there will be no change in the amount of market borrowing through dated securities with reference to the first half (April-September 2011) borrowing calendar published earlier.  However, the Reserve Bank of India, in consultation with the Government of India, has decided to shift the auction of dated securities scheduled in the week ending September 23, 2011 to week ending August 19, 2011 to modulate the cash flows. It was also decided that temporary mismatches in cash flows, if any, would be managed by issuance of Cash Management Bills (CMBs).

The Reserve Bank of India has today issued guidelines (A P DIR Series Circular No 3 dated July 21, 2011 (rbi.org.in/Scripts/NotificationUser.aspx?Id=6619&Mode=0) ) allowing non-resident importers and exporters to hedge their currency risk in respect of exports from and imports to India, invoiced in Indian Rupees, with AD Category I banks in India. The guidelines have been finalised in consultation with the Foreign Exchange Dealers Association of India (FEDAI) and market participants.

The results of the RBI Repo/Reverse Repo auctions held on July 21, 2011 are: