The Reserve Bank of India (RBI) will sell inflation-indexed bonds worth Rs 1,000 crore through price-based auction on November 26.
This is the second round of inflation bonds, after the maiden offering in June.
RBI would allot up to 20 per cent of the notified amount of the bonds to eligible individuals and institutions according to the scheme for non-competitive bidding facility.
Interest at the rate of 1.44 per cent per annum will accrue on the indexed principal value of the bonds from the date of original issue and will be paid half yearly on December 5 & June 5, the central bank said in a release.
The bids for the auction should be submitted in electronic format on RBI's core banking solution on November 26, the release said.
The central bank will announce result of the auctions on November 26 and payment by successful bidders will be on November 27, it added.