Talking to a private news agency Reuters, two sources said that India may not be issuing any more Cash Management Bills (CMBs) in the month of May.

They said that the decision was taken after it was seen that no bond redemption during this month remains. The last of the lot got redeemed on Friday itself.

As per the data provided by the Central Bank, 2010 bonds with a rate of 7.55 per cent lead to a payment of Rs. 254.20 billion. These bonds are the ones that matured on Friday. Another figure suggests that the 35-day cash management bills which is going to see maturity today will cost it Rs. 50 billion. The money will be repaid on June 16.

While authorities believe that without any redemption coming up there is no point in continuing with CMBs, dealers say that any more issuance will not impact the liquidity in the market.

The concept of CMBs was first introduced by the apex bank in August 2009. The aim of these was to meet the temporary liquidity requirement of the government.