The Reserve Bank on Thursday said it has not accepted any offer for the repurchase of inflation indexed bonds (IIBs) maturing in 2023.

Last week, RBI had said the government would be repurchasing the not-so-successful inflation indexed bonds (IIBs) maturing in 2023 through a reverse auction on Thursday at face value.

"The repurchase auction of 1.44 per cent Inflation Index GS 2023 was conducted today. After examining the bids, it has been decided in consultation with Government of India not to accept any offer," the central bank said in a statement.

The Finance Ministry in a statement on January 11 had said the Government would repurchase ‘1.44 per cent Inflation Indexed Government Stock-2023’ through reverse auction for an aggregate amount of Rs 6,500 crore (face value).

The statement said the repurchase would be undertaken to redeem the Government Stocks prematurely by utilising surplus cash balances.

The repurchase of the Government Stocks was "purely ad hoc in nature", it added.

The bonds were launched as an alternative to the gold as an investment in the days of high current account deficit.

The IIBs had promised a coupon of 1.50 per cent above the prevailing rate of inflation.

In the past, RBI had said it was working to make the instrument more attractive and was in discussion with the government on this.