Amid poor response from the public for inflation indexed bonds (IIBs), the government is now going to repurchase its own papers.

The bonds were launched as an alternative to gold as an investment in 2013 at the time of high current account deficit. But poor marketing and tax issues led to lukewarm response from the public.

“The government will repurchase 1.44 per cent Inflation Indexed Government Stock-2023 through reverse auction for an aggregate amount of Rs 6,500 crore (face value),” a finance ministry statement said on Monday.