BIS Review 33/2007  9  Reserve Bank has been undertaking passive consolidation of securities by reissuing the existing securities to build up stock at key maturities. During 2006-07, the reissues accounted for 91% of the total issuances made.
Since passive consolidation takes longer time to make an impact on enhancing the liquidity, Active consolidation was proposed by way of buying back illiquid bonds and reissuing liquid bonds. The Scheme has been finalized in consultation with the Government and the budgetary provision of Rs. 25 billion has also been made in this regard. Further action is being taken by RBI.