Government securities auction: re issues open for competitive and non competitive bids, with scheduled results and settlement.
Government announced re issues of several dated stocks and a floating rate bond to be auctioned by the Reserve Bank of India using the multiple price method, with notified amounts, an option to retain additional subscriptions, electronic bid submission via E Kuber, separate windows for non competitive and competitive bids, up to five percent allocation for eligible individuals and institutions under the Scheme for Non Competitive Bidding Facility, scheduled result and settlement dates, and eligibility for When Issued trading under RBI guidelines.

Government securities re-issue auction: price-based bidding via RBI with non-competitive allocation and when-issued trading eligibility.
Sale (re-issue) auctions announced for three Government securities with notified nominal amounts and an issuer option to retain additional subscription up to a prescribed cap. Auctions will be conducted by the Reserve Bank of India using the multiple price method and price-based bidding. Up to five percent of each notified amount is reserved for eligible participants under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically via the Reserve Bank's E-Kuber system within prescribed time windows on the auction date; results and payment are scheduled as announced. The re-issued stocks are eligible for When Issued trading under the Reserve Bank's guidelines.

Sovereign Gold Bond pricing: online applicants paying digitally receive a per gram discount during the specified subscription period.
The Sovereign Gold Bond Scheme 2020-21 Series II fixes the issue price by reference to the simple average closing price for 999 purity gold for the last three business days preceding the subscription period and opens subscriptions from May 11, 2020 to May 15, 2020. The Government, in consultation with the Reserve Bank, offers a per gram discount to investors who apply online and pay through digital mode, resulting in a discounted issue price for such applicants.

Issuance calendar for government securities updated; retail non competitive reservation and RBI flexibility including green shoe option permitted.
The document sets a revised weekly issuance calendar for marketable Government of India dated securities for H1 2020 21 with specified tenors and aggregate notified issuance. All auctions include a non competitive bidding facility reserving five percent for specified retail investors. The Reserve Bank of India, in consultation with the Government, may modify notified amounts, maturities and instrument types, use a green shoe option as indicated in auction notifications, and will conduct monthly switch auctions; auctions are subject to existing auction terms and conditions.

Government securities auction: issuance and re-issuance conducted by RBI with competitive and non-competitive bidding and allocation rules.
Sale and re-issue of specified Government securities will be conducted by the Reserve Bank of India using the multiple price method: price-based auctions for the re-issues and a yield-based auction for a new ten-year stock; the issuer may retain additional subscription up to a notified limit. Both competitive and non-competitive bids must be submitted electronically via the E-Kuber system within prescribed windows; up to five percent is reserved under the Non-Competitive Bidding Facility. Auction results and payment follow on scheduled dates, and the stocks are eligible for "When Issued" trading per RBI guidelines.

Monetary financing options remain under consideration, with RBI stressing balanced judgment to protect its balance sheet and stability.
RBI emphasises a cautious, balanced approach to monetary-fiscal coordination during COVID 19, keeping conventional and unconventional instruments on the table while preserving the central bank's balance sheet and macroeconomic stability. No final decision has been made on primary participation in government borrowing or private placement of long dated bonds; secondary market operations and liquidity tools (including a wider LAF corridor and lower reverse repo) will be used to incentivise credit flow. The RBI is intensifying supervision, mandating protective measures for banks, and advancing fintech regulation and a regulatory sandbox.

Special Liquidity Facility for Mutual Funds provides on tap repo funding to banks for on lending and purchases to ease MF liquidity.
The Reserve Bank opened an on tap Special Liquidity Facility for Mutual Funds allowing banks to obtain repo funding at the fixed policy rate to on lend to mutual funds or to purchase/repo against investment grade corporate bonds, commercial paper, debentures and certificates of deposit held by mutual funds. Funding under the facility may be classified in the held to maturity portfolio beyond normal limits, is excluded from the Large Exposure Framework, does not count toward adjusted non food bank credit for HTM securities, and is exempt from banks' capital market exposure limits; operational terms align with LAF norms including eligible collateral, haircuts, bid mechanics and security substitution.

Fiscal response must be carefully designed to address revenue shortfalls and support gradual, uneven economic recovery across states.
Council members agreed pre March GDP projections must be revised downwards, recovery will be gradual and uneven across States, and the pandemic poses significant uncertainty for public finances requiring a nuanced fiscal response focused on design. Priority measures include targeted support for cash starved small enterprises, preventing distress in non banking financial companies (including partial loan guarantees and RBI led capitalization of financial institutions), monitoring Central and State finances with short term cash management options, planning financing for additional deficits, and ensuring States have timely access to funds.

Government securities auction using multiple price method permits non-competitive bids and when-issued trading under RBI rules.
The Government announced price-based re-issue auctions of three Government Stocks using the multiple price method, with the RBI conducting the auctions at its Mumbai office and offering up to 5% allocation to eligible individuals and institutions through the Non-Competitive Bidding Facility. Bids must be submitted electronically on the RBI's E-Kuber system within prescribed time windows on the auction date; results and payment dates are specified. The Stocks will be eligible for when-issued trading under existing RBI guidelines.

Electronic cards for overdraft accounts permitted; restricted to domestic non cash use and subject to bank Board policies.
Banks may issue electronic cards to natural persons with Overdraft Accounts in the nature of personal loans, provided card validity does not exceed the facility tenure and subject to lenders' rights. Card use is limited to domestic non cash/online transactions, with cash restrictions except for overdrafts linked to PMJDY accounts. Banks must have a Board approved policy addressing risk management, periodic review and grievance redressal; issuance must comply with existing debit card instructions, security and confidentiality requirements of the Reserve Bank.

Prior government approval for FDI from land border countries now required to curb opportunistic takeovers amid pandemic.
The Central Government amended the FEMA (Non debt Instruments) Rules to mandate prior government approval for any FDI where the investing entity or beneficial owner is situated in, or is a citizen of, a country sharing a land border with India, applying to both direct and indirect investments; the change channels such investments to the government approval route to prevent opportunistic takeovers during the COVID 19 pandemic while existing sectoral approval and prohibited sector rules remain operative.

HTM requirement for TLTRO funds mandates specified securities held to maturity; penalties apply for undeployed funds.
Banks availing TLTRO funds must maintain specified securities in their HTM book equal to the amount received until maturity; such securities are to be fresh acquisitions above pre-existing holdings and may remain in HTM until maturity. If classified as AFS/HFT at acquisition they cannot later be moved to HTM and must be separately identified. Deployment windows and market-source limits apply, with an incremental interest penalty for undeployed funds, and certain tranches impose issuer concentration caps that are tranche-specific.

Government securities auction using multiple-price method; reissues available with non-competitive bidding and electronic submissions on scheduled settlement dates.
Re-issue auctions of specified Government stocks will be conducted by the Reserve Bank of India using the multiple-price auction method, with an option to retain additional subscriptions up to a notified limit. Up to five percent of each notified amount is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically via the E-Kuber system within prescribed time windows; results will be announced on the auction day and settlement will occur on the scheduled payment date. Securities are eligible for When Issued trading under RBI guidelines.

Multilateral development bank cooperation urged to expand emergency financial assistance for pandemic response and infrastructure support.
The minister urged enhanced multilateral financial cooperation via the New Development Bank to mobilise resources for infrastructure, sustainable development and pandemic response, commending NDB's credibility and calling for enlarged, fast-tracked emergency financing to assist member states. She outlined India's domestic COVID-19 measures-healthcare funding, social support for vulnerable groups, frontline worker insurance, regulatory relief for firms and monetary easing-and urged the NDB to adopt innovative practices, coordinate with other multilateral development banks and seek engagement with the G-20 to strengthen resource mobilisation for development and crisis response.

Land-border investor restrictions: foreign investments with beneficial owners from neighbouring countries now require government route and approval on ownership changes.
An entity of a country that shares a land border with India, or where the beneficial owner is a citizen of or situated in such a country, may invest in India only under the Government route; any transfer of existing or future FDI that results in beneficial ownership falling within this restriction will also require Government approval, effective from the FEMA notification date.

Sovereign Gold Bond issue price set with an online digital payment discount available to eligible electronic applicants.
Sovereign Gold Bond 2020-21 Series I fixes the bond's nominal value per gram by reference to the simple average closing price for 999 purity gold for the three business days preceding the subscription week and opens subscription from April 20-24, 2020. Eligible applicants who apply online and pay through digital modes receive a per gram discount off that nominal value, reducing the payable issue price for such digital online applications.

Treasury bill issuance calendar updated; government and central bank retain flexibility to modify auction amounts and timing.
Revised issuance calendar for Treasury Bills issued for the remaining quarter ending June 2020 sets weekly auction dates for 91 day, 182 day and 364 day instruments with consistent per auction allocations and aggregate quarterly totals. The Government, in consultation with the Reserve Bank, retains flexibility to modify notified amounts and timing based on cash management needs and market conditions, and any changes will be communicated by press release. All auctions are subject to the terms and conditions of the applicable General Notification governing Treasury Bill issuance.

Central bank liquidity measures expand bank credit and support NBFC funding through targeted LTRO and eased provisioning rules.
The Reserve Bank deployed monetary and regulatory measures to expand bank credit and boost liquidity by easing non-performing asset recognition rules, restricting bank dividend payouts, reducing the policy rate corridor, and instituting a targeted long-term repo operation (LTRO) to activate the corporate bond market and provide liquidity to NBFCs; forward guidance indicating softer inflationary pressure is said to create room for further monetary action.

Targeted liquidity provision via TLTRO 2.0 channels repo funding to NBFCs and MFIs with deployment and reporting conditions.
The Reserve Bank authorised Targeted Long Term Repo Operations (TLTRO) 2.0 to supply liquidity to small and mid sized corporates, NBFCs and MFIs, with repos at the policy rate for tenors up to three years. Funds must be invested in investment grade bonds, commercial paper and NCDs of NBFCs, with at least half the facility apportioned across MFIs and NBFCs in specified asset bands (asset size by latest audited balance sheet). Investments may be held to maturity beyond HTM limits and exposures under this facility are excluded from the Large Exposure Framework; deployment and reporting timelines are prescribed.

Digital payment infrastructure enabled prompt Direct Benefit Transfer relief using JAM-linked PMJDY and interoperable payment channels.
Digital payment infrastructure using Jan-Dhan-Aadhaar-Mobile (JAM) linkage and PMJDY accounts enabled prompt Direct Benefit Transfer (DBT) relief under the Pradhan Mantri Garib Kalyan package via interoperable modes-AePS, Bhim Aadhaar Pay, RuPay cards, UPI and BBPS-supporting cash and digital transactions at branches, BC points, merchant locations and online, and facilitating disbursement to scheme-specific beneficiary groups.