Cash Management Bills (CMB) worth Rs 80000 cr announced…

RBI announced auction of CMBs worth Rs 80,000 cr to be held on 28-May-2020.

The issuance of CMB is done when WMA limits are breached.

This blog has been tracking WMA regularly and the position does not look good. It has become a continuous source of financing. It was a matter of time when the government will breach WMA limits and CMBs to be issued. We will have to wait for WSS data to ascertain whether WMA limits were breached in this weekly period.

WSS release Date Date of WMA WMA Amount WMA Limit Difference WMA Breach CMB
10-Jan-20 03-Jan-20 130171 35000 -95171 Y worth Rs 60000 cr (30k+30 k)
17-Jan-20 10-Jan-20 60605 35000 -25605 Y
24-Jan-20 17-Jan-20 87735 35000 -52735 Y
31-Jan-20 24-Jan-20 24184 35000 10816 N
07-Feb-20 31-Jan-20 73545 35000 -38545 Y worth Rs 60000 cr (30k+30 k)
14-Feb-20 07-Feb-20 23324 35000 11676 N
21-Feb-20 14-Feb-20 6817 35000 28183 N
28-Feb-20 21-Feb-20 0 35000 35000 N
06-Mar-20 28-Feb-20 5081 35000 29919 N
13-Mar-20 06-Mar-20 32976 35000 2024 N
20-Mar-20 13-Mar-20 20553 35000 14447 N
27-Mar-20 20-Mar-20 0 35000 35000 N
03-Apr-20 27-Mar-20 50477 35000 -15477 Y worth Rs 80000 cr (40k+40 k)
10-Apr-20 03-Apr-20 40008 120000 79992 N
17-Apr-20 10-Apr-20 110942 120000 9058 N
24-Apr-20 17-Apr-20 135451 120000 -15451 Y No CMB, perhaps was resolved quickly
01-May-20 24-Apr-20 111985 200000 88015 N
08-May-20 01-May-20 165833 200000 34167 N
15-May-20 08-May-20 134970 200000 65030 N
22-May-20 15-May-20 128836 200000 71164 N
29-May-20 22-May-20 CMB worth Rs 80000 announced on 26 May and to be auctioned on 28 May
05-Jun-20 29-May-20

 

 

 

 

 

 

One Response to “Cash Management Bills (CMB) worth Rs 80000 cr announced…”

  1. Seldom Human (@human_seldom) Says:

    apart from maturity date what are the difference between CMB and Treasury bill and what are the use cases?

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