The Reserve Bank of India has provided specific details about its ₹2 trillion government securities purchase program, announcing that the first installment worth ₹500 billion will be conducted on December 29. This announcement adds clarity to the central bank's previously outlined monetary policy measures that also include a $10 billion USD/INR swap auction.

December 29 Purchase Details

The RBI has scheduled the first phase of its government securities purchase program for December 29, with a substantial allocation of ₹500 billion. This represents the initial installment of the larger ₹2 trillion program that will be executed through four separate phases.

Overall Program Structure

The comprehensive monetary policy intervention includes both government securities purchases and currency swap operations. The structured approach allows the central bank to manage market liquidity effectively while maintaining flexibility in execution.

Market Operations Impact

The December 29 operation marks the beginning of the RBI's significant market intervention designed to influence domestic liquidity conditions. The ₹500 billion purchase represents a substantial injection of liquidity into the financial system, while the systematic four-installment approach provides better market management and distribution across different time periods.

The combination of government securities purchases starting December 29 and the planned currency swap operations demonstrates the central bank's comprehensive strategy for monetary policy implementation and market operations management.

Bank of India has announced its decision to exercise the call option on its 9.04% Additional Tier 1 Bonds Series VI, setting January 13, 2026 as the record date for this corporate action. The announcement was made through a regulatory filing dated December 22, 2025, in compliance with Regulation 60 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Bond Details and Terms

The bonds in question are the 9.04% Additional Tier 1 Bonds Series VI with ISIN number INE084A08136. These bonds were originally issued on January 28, 2021, pursuant to the terms mentioned in the Information Memorandum dated January 27, 2021.

Call Option Exercise Process

The bank has decided to exercise its call option on these bonds, with the call option becoming exercisable on January 28, 2026. As per the announcement, Tuesday, January 13, 2026 has been declared as the record date for determining eligible bondholders.

On January 28, 2026, Bank of India will make payment of both the broken period interest and the call option amount (principal) to holders of the bonds as on the record date. This payment structure ensures that bondholders receive their due interest for the period along with the principal redemption.

Impact on Bondholders

Upon completion of the payment process on January 28, 2026, Bank of India's liability towards the bondholders will cease entirely. The bank has clarified that all bondholder rights, including payment obligations and other related rights, will stand extinguished once the call option amount and broken period interest are paid to eligible bondholders.

This call option exercise represents a standard corporate action for Additional Tier 1 bonds, allowing the issuing bank to redeem the securities at predetermined dates as specified in the original bond terms and conditions established during the 2021 issuance.