RBI to auction cash management bills worth Rs 10,000 cr

In a bid to suck out excess liquidity, the Reserve Bank of India (RBI) has announced the auction of the 42-days cash management bills worth Rs 10,000 crore on Monday.

The auction will be conducted on using multiple price auction method. The Cash Management Bills will be repaid at par on December 23, said RBI.

"Earlier this month there were bond maturities worth Rs 40,000 crore due to which there has been excess liquidity in the system. RBI has been sucking out that liquidity," said the treasury head of a large public sector bank.