The Reserve Bank of India (RBI) issued a notification on May 29, 2025, amending its existing guidelines for Separate Trading of Registered Interest and Principal of Securities (STRIPS) of government securities. This amendment, made under the Government Securities Act, 2006, modifies the previous notification from October 16, 2009. Key changes include the substitution of “PDO-NDS (Negotiated Dealing System)” with “Reserve Bank of India Core Banking Solution (e-Kuber System)” in section II, clause (1) for operational purposes. Additionally, section II, clause (2) has been revised to expand the eligibility for stripping and reconstitution. Now, all fixed coupon securities issued by the Government of India are eligible, regardless of maturity year. For State Government/Union Territory fixed coupon securities, eligibility is granted if they have a residual maturity of up to 14 years and a minimum outstanding value of ₹1,000 crore on the day of stripping. A condition for all eligible government securities is that they must qualify as eligible investments for Statutory Liquidity Ratio (SLR) and be transferable. This amendment was signed by Ajay Kumar, Executive Director.
RESERVE BANK OF INDIA
NOTIFICATION
Mumbai, the 29th May, 2025
Government Securities – Separate Trading of Registered Interest and Principal of Securities (STRIPS) (Amendment)
F. No. IDMD. No. S321/10.18.060 /2025-26.—In exercise of the powers conferred vide explanation to sub-section (2) of section 11 read with clause (i) of section 2 of the Government Securities Act, 2006, the Reserve Bank of India, hereby, makes the following amendment in notification IDMD No. 1762/ 2009-10 dated October 16, 2009, namely: –
A. In section II, for clause (1), for the words “PDO-NDS (Negotiated Dealing System)”, the words “Reserve Bank of India Core Banking Solution (e-Kuber System)” shall be substituted.
B. In section II, for clause (2), the following shall be substituted: –
“2. (a) All fixed coupon securities issued by the Government of India, irrespective of the year of maturity, shall be eligible for Stripping/Reconstitution; and
(b) All fixed coupon securities issued by a State Government/Union Territory, having a residual maturity of up to 14 years and minimum outstanding of ₹1,000 crore as on the day of stripping, shall be eligible for Stripping:
Provided that the Government securities referred to in sub-clauses (a) and (b) are reckoned as eligible investment for the purpose of Statutory Liquidity Ratio (SLR) and are transferable.”
AJAY KUMAR, Executive Director
[ADVT.-III/4/Exty./138/2025-26]
Note : Notification IDMD. No. 1762/2009-10 dated 16th October 2009 was published in Official Gazette PART III- SECTION 4, dated NOVEMBER 14- NOVEMBER 20, 2009 and was subsequently amended by Notification No. IDMD.GBD 2614/08.08.16/2018-19 dated 10th April 2018 published in Official Gazette PART III- SECTION 4, dated April 25, 2018.
