Why is it in the news?
RBI announced ₹25,000 crore switch auction of Government Securities.
Aims to manage heavy redemption pressure in FY27.
Category: Economy
Important Points:
● Switch auction replaces short-term bonds with long-term bonds
● Total earlier operations amounted to ₹84,804 crore
● FY27 faces ₹5.47 lakh crore bond redemptions
● Helps smooth debt maturity profile beyond FY32
● Reduces refinancing risks
● Supports fiscal stability
● Gross market borrowing budgeted at ₹17.2 lakh crore
● Used as debt management tool