RBI to auction Rs 32,000 crore government bonds on Friday
New Delhi, July 6
The Reserve Bank of India will auction Government of India dated securities worth Rs 32,000 crore on Friday.
The auction involves the re-issue of two bonds. These are Rs 21,000 crore of the 6.36 per cent GS 2031 maturing on February 16, 2031, and Rs 11,000 crore of the 7.71 per cent GS 2066 maturing on May 18, 2066. The government will also have the option to retain an additional subscription of up to Rs 2,000 crore against each security.
The sale will be conducted by the RBI Mumbai Office using the multiple price method. Bids have to be submitted electronically on the RBI Core Banking Solution, or e-Kuber system. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m., while competitive bids can be submitted between 10:30 a.m. and 11:30 a.m. The results will be announced on the same day, and payment by successful bidders will be made on Monday, July 13, 2026. Primary Dealers can submit bids for the Additional Competitive Underwriting portion between 9:00 a.m. and 9:30 a.m. on July 10.
The minimum bid size is Rs 10,000 and in multiples of Rs 10,000 thereafter. Up to 5 per cent of the notified amount for each security will be reserved for non-competitive bidding for eligible individuals and institutions. Retail investors can also place bids through the RBI Retail Direct portal. Allotment under the non-competitive segment will be at the weighted average yield or price of successful competitive bids.
The securities will be eligible for "When Issued" trading from July 7 to July 10. They will also be eligible for repurchase transactions or repo as per RBI guidelines. Interest on the government securities will generally be paid half-yearly, with details mentioned in the specific notification.
The auction is being conducted under the a general notification dated March 26, 2025. Investments by non-residents will be subject to the Fully Accessible Route guidelines. The RBI has said it reserves full discretion to accept or reject any or all bids wholly or partially without assigning any reason.
— ANI
Reader Comments
As a retail investor, I'm happy they've made it easy through the RBI Retail Direct portal. Finally common people can participate in government securities! 🎉 Only wish the interest rates were a bit higher for long-term bonds.
Rs 32,000 crore is a big number! But I hope this money is used for infrastructure development and not just to pay off old debts. Transparent utilization is what we need. Also, why is the RBI reserving the right to reject bids arbitrarily?
As an NRI, it's good to see India's bond market maturing. Fully Accessible Route for non-residents is a smart move to attract foreign capital. Though I wish we had clearer guidelines on tax implications for overseas investors.
Multiple price method for auction seems fair. But who really benefits from 2066 bonds? At 7.71% yield, it's decent for pension funds but risky for retail. Also, the option to retain additional subscription could lead to overselling. Just my two paise.
Interesting how India's bond auction process is similar to Western markets. e-Kuber system seems efficient for bidding. I appreciate the transparency in timing and guidelines. However, 5% reservation for non-competitive bidders seems low.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.