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RBI Sets Cut-Off Rate for Rs 34,000 Crore G-Sec Underwriting Auction

The Reserve Bank of India announced the result of the underwriting auction for the Additional Competitive Underwriting of the "New GS 2036" government security. The cut-off rate for underwriting commission payable to Primary Dealers was set at 0.38 paise per Rs 100. The total amount underwritten for the Government of India security stood at Rs 34,000 crore. The underwriting process ensures adequate subscription support for government bond issuances.

Key Points: RBI Announces Rs 34,000 Crore G-Sec Underwriting Auction Result

  • RBI sets cut-off rate at 0.38 paise per Rs 100 for underwriting commission
  • Underwriting auction for New GS 2036 security with notified amount of Rs 34,000 crore
  • Minimum Underwriting Commitment fixed at Rs 17,010 crore
  • Additional Competitive Underwriting accepted at Rs 16,990 crore
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RBI announces result of underwriting auction for Rs 34,000 crore government securities

RBI sets cut-off rate at 0.38 paise for underwriting commission on New GS 2036 security; total amount underwritten stands at Rs 34,000 crore.

"In the underwriting auction conducted on May 08, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government security, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers. - RBI"

New Delhi, May 8

The Reserve Bank of India on Friday announced the result of the underwriting auction conducted for the Additional Competitive Underwriting of the "New GS 2036" government security, setting the cut-off rate for underwriting commission payable to Primary Dealers at 0.38 paise per Rs 100.

The underwriting auction was conducted for the Government of India security with a notified amount of Rs 34,000 crore, according to the RBI release issued on Friday.

"In the underwriting auction conducted on May 08, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government security, 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 "New GS 2036" security, under which the Minimum Underwriting Commitment (MUC) amount was fixed at Rs 17,010 crore. The Additional Competitive Underwriting amount accepted stood at Rs 16,990 crore, taking the total amount underwritten to Rs 34,000 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
The government's borrowing needs are always climbing. ₹34,000 crore is a big number but we need to ensure our fiscal deficit stays manageable. Hope the RBI and Government are coordinating well on this. 🇮🇳
R
Ravi K
Yaar, this is all technical stuff for finance wallahs. For common people like us, what matters is whether this borrowing will lead to inflation or higher interest rates on our loans. 😕
P
Priyanka N
Good to see transparency from RBI on these auctions. Underwriting ensures our government debt is always subscribed. But I wonder - is this just adding to the debt pile that future generations will have to repay? 🤔
A
Abhishek O
Primary Dealers are doing yeoman service to the market. Without them, our G-Sec auctions could fail. ₹34,000 crore is a huge amount to underwrite. Respect to the financial system backbone! 👏
N
Naveen S
The underwriting commission of 0.38 paise seems very thin for the risk PDs take. If market yields move against them before the main auction, they could lose heavily. RBI needs to balance risk and reward for these key market participants.
M
Michael C
Interesting to see how India manages its borrowing program.

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