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RBI Announces Underwriting Auction Result for Rs 32,000 Crore G-Secs

The Reserve Bank of India announced the results of an underwriting auction for Additional Competitive Underwriting of government securities. The auction covered two securities, 6.36% GS 2031 and New GS 2066, with a total notified amount of Rs 32,000 crore. The RBI set the cut-off rates for underwriting commission payable to Primary Dealers. This process ensures adequate subscription support for the government's borrowing programme.

Key Points: RBI Sets Cut-Off Rates for Rs 32,000 Crore G-Sec Underwriting

  • RBI sets cut-off rates for underwriting commission
  • Auction covers 6.36% GS 2031 and New GS 2066 securities
  • Total underwritten amount stands at Rs 32,000 crore
  • Primary Dealers commit to support government borrowing
2 min read

RBI announces result of underwriting auction for Rs 32,000 crore government securities

RBI announces underwriting auction results for Rs 32,000 crore government securities, setting cut-off rates for Primary Dealers' commission.

"The RBI said the auction pertained to the 6.36% GS 2031 and New GS 2066 securities - RBI Release"

New Delhi, May 15

The Reserve Bank of India on Friday announced the result of the underwriting auction conducted for the Additional Competitive Underwriting, setting the cut-off rates for underwriting commission payable to Primary Dealers.

The underwriting auction was conducted for the Government of India security with a notified amount of Rs 32,000 crore, according to the RBI release issued on Friday.

"In the underwriting auction conducted on May 15, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers," the central bank said in its release.

The RBI said the auction pertained to the "6.36% GS 2031" and "New GS 2066" securities, under which the Minimum Underwriting Commitment (MUC) amount was fixed at Rs 10,500 crore and Rs 5,502, respectively. The Additional Competitive Underwriting amount accepted stood at Rs 10,500 crore and Rs 5,498, respectively, taking the total amount underwritten to Rs 32,000 crore.

Government securities, commonly known as G-Secs, are debt instruments issued by the Government of India to borrow money from the market. Underwriting auctions are conducted to ensure that government bond issuances receive adequate subscription support from Primary Dealers.

Primary Dealers are institutions authorised by the RBI to support the government securities market by underwriting issuances and participating in auctions. They play a key role in ensuring smooth borrowing operations for the government.

The underwriting process is carried out before the main auction of government securities. Through this mechanism, Primary Dealers commit to underwrite a specified portion of the issue in return for an underwriting commission.

The RBI regularly conducts underwriting auctions as part of the government's market borrowing programme aimed at financing fiscal requirements through dated securities and treasury bills.

- ANI

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Reader Comments

S
Sneha F
I wish these financial terms were explained more simply for common people like us! 😅 But I understand it's about the government borrowing money to meet its expenses. As long as they use it wisely for development, it's okay.
A
Aditya G
The underwriting commission is the key here—primary dealers take on risk in return for a fee. It's a well-designed system. But I hope the government keeps a check on fiscal deficit; too much borrowing can lead to higher interest rates later.
L
Lakshmi X
Important step for the bond market. The inclusion of "New GS 2066" (40-year bond?) shows the government is locking in low rates for long-term borrowing. Smart move! 👏
M
Manish T
Primary dealers are the backbone of G-Sec market. Without them, auctions might fail. Good to see RBI's transparent process. But I wish retail investors also got easier access to these securities directly.
P
Priyanka N
Honestly, I find these financial news hard to follow. 😅 But I know the RBI is doing its job. Let's hope this borrowing translates into better public services and not just interest payments!
D
Deepak U
Underwriting auction ensures liquidity in the bond market. The cut-off rates set by RBI are

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