Home › Circulars › RBI/2009-10/497

Cash Management Bills: PD Bidding & Success Ratio Rules

Current · Source: Reserve Bank of India · RBI/2009-10/497 · issued 17 Jun 2010 · ~1 min read
Quick answerPrimary Dealers must bid in all Cash Management Bill auctions per their Treasury Bill bidding commitment, and CMB auction success counts toward the 40% minimum success ratio for T-Bills each half-year.

What changed

RBI clarified that Primary Dealers' bidding commitment for Treasury Bill auctions applies equally to Cash Management Bill auctions. Success in CMB auctions will now be included when calculating the minimum success ratio of 40% for Treasury Bills each half-year.

What it means for you

For PDs, this means CMBs are treated like T-Bills for bidding obligations and performance metrics, increasing the pressure to participate actively in these short-term auctions. Banks and lenders relying on PDs for government paper liquidity should note that CMBs now directly affect T-Bill success ratios, potentially influencing PD bidding behavior and market depth.

What you must do

Who it affects

Primary Dealers, Treasury operations teams at banks, RBI's debt management division

❓ Common questions

What are Cash Management Bills?

CMBs are short-term, non-standard discounted instruments issued by the Government of India for maturities less than 91 days, designed to manage temporary cash flow mismatches.

How does this affect the minimum success ratio for T-Bills?

Success in CMB auctions is now counted when calculating the 40% minimum success ratio for Treasury Bills each half-year, so PDs must include CMBs in their performance assessment.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/497 IDMD.PDRD.No. 5573/03.64.00/2009-10 June 17, 2010 All Primary Dealers Dear Sir Cash Management Bills – Bidding Commitment and Success Ratio Please refer to the Press Release dated August 10, 2009 on issuance of Government of India Cash Management Bills (CMBs), wherein, it has been stated that the Government of India, in consultation with the Reserve Bank of India, has decided to issue a new short-term instrument, known as Cash Management Bills, to meet the temporary cash flow mismatches of the Government. The CMBs will be non-standard, discounted instruments issued for maturities less than 91 days. Further, it has been stated that the CMBs will have the generic character of Treasury Bills. 2. As the PDs are expected to support the primary issuances of Government of India, it has been decided that the PDs shall bid in each auction of CMBs as per the bidding commitment submitted by the PDs for Treasury Bill auctions. Further, the success in Cash Management Bills auctions will be taken into account while calculating minimum success ratio of 40 per cent for Treasury Bills for each half year. The CMBs transactions may be reported in PDR returns along with the T-Bills transactions. Yours faithfully (K.K.Vohra) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/497 · issued 17 Jun 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Internal Debt Management
RBI Auction of State Government SecuritiesRBI Buyback of Government Securities: ₹20,000 Crore AuctionRBI Buyback Auction Results for Government SecuritiesRBI Buyback Auction Results for Government SecuritiesState Govt Securities Auction Results – July 28, 2026
Browse all departments →
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Primary Dealers, Treasury operations teams at banks, RBI's debt management division), your first concrete step on “Cash Management Bills: PD Bidding & Success Ratio Rules” is: “Ensure your PD bidding commitment for T-Bills covers CMB auctions as well.” (RBI issued this 17 Jun 2010).

  1. Circular: RBI/2009-10/497 -- Cash Management Bills: PD Bidding & Success Ratio Rules
  2. Issued: 17 Jun 2010
  3. Action required: Ensure your PD bidding commitment for T-Bills covers CMB auctions as well.
  4. Action required: Track CMB auction success alongside T-Bill success to maintain the 40% half-yearly minimum ratio.
  5. Action required: Report CMB transactions in PDR returns together with T-Bill transactions.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5730&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—