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RBI to Facilitate Rs 34,000 Crore Govt Securities Underwriting Auction on May 8

The RBI will conduct an underwriting auction for Rs 34,000 crore government securities on May 8, 2026. The auction focuses on a new issuance called "New GS 2036" using a multiple price-based method. Primary Dealers have a Minimum Underwriting Commitment and bidding commitment of Rs 810 crore each. Bids must be submitted electronically via the e-Kuber system between 09:00-09:30 AM.

Key Points: RBI to Auction Rs 34,000 Crore Govt Securities on May 8

  • Auction for Rs 34,000 crore government securities on May 8, 2026
  • New GS 2036 issuance under multiple price-based method
  • Minimum Underwriting Commitment of Rs 810 crore per Primary Dealer
  • Bids via e-Kuber system from 09:00-09:30 AM
  • Commission credited on day of security issuance
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RBI to facilitate underwriting auction for government securities for Rs 34,000 crore on 8th May

RBI to conduct underwriting auction for Rs 34,000 crore government securities on May 8, 2026. Includes new GS 2036 issuance with specific bidding rules for Primary Dealers.

"Government of India has announced the sale (issue) of Government Security, as detailed below, through auction to be held on May 08, 2026 (Friday). - Reserve Bank of India"

New Delhi, May 7

The Government of India is set to conduct an underwriting auction for the sale of Government Securities totalling Rs 34,000 crore on May 08, 2026. This auction focuses on a new issuance designated as "New GS 2036," which the central bank scheduled for Friday.

According to the Reserve Bank of India (RBI), the entire notified amount for the new security is subject to this underwriting process.

"Government of India has announced the sale (issue) of Government Security, as detailed below, through auction to be held on May 08, 2026 (Friday)."

The central bank stated that the underwriting auction will follow a multiple price-based method. This format allows participants to submit bids at different price levels for the long-term government paper.

"As per the extant scheme of underwriting commitment notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) auction, applicable to each Primary Dealer (PD)," the RBI said in a release.

For the "New GS 2036" security, the RBI established a Minimum Underwriting Commitment of Rs 810 crore for each Primary Dealer. Additionally, the minimum bidding commitment under the Additional Competitive Underwriting auction is fixed at Rs 810 crore per dealer.

Primary Dealers must submit their bids for the ACU auction through electronic channels. The RBI mandated the use of its Core Banking Solution, known as the e-Kuber system, for these financial transactions.

"PDs may submit their bids for ACU auction electronically through Reserve Bank of India Core Banking Solution (e-Kuber system) between 09:00 A.M. and 09:30 A.M. on the day of underwriting auction," the RBI notified.

The administrative guidelines from the central bank specify that the commission for these underwriting services is credited to the current accounts of the dealers on the day of the security issuance.

"The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of security."

- ANI

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Reader Comments

P
Priya S
Multiple price-based method is good for transparency. But the timing matters - with global uncertainties, will there be enough demand for long-term papers? Hope RBI's strategy pays off, else taxpayers will bear the burden. 🙏
V
Vikram M
Primary Dealers must be prepared for this. The 9:00-9:30 AM window for bids is tight but typical for such auctions. e-Kuber system has been reliable so far. Let's see how the yield turns out - could set the benchmark for other bonds.
S
Sneha F
Honestly, these financial technicalities go over my head but I appreciate the transparency. However, I hope the government is not just kicking the can down the road by issuing long-term debt. Need to see actual fiscal discipline, not just clever financial engineering. 💭
M
Michael C
Interesting to see RBI using the e-Kuber system for this. As someone who works in fintech, I can say it's a robust platform. The 30-minute window for bids is standard practice globally for such auctions. Hope the yield remains attractive for investors.
R
Ravi K
The underwriting commission crediting on the same day is a smart liquidity management strategy. This auction will test market appetite for longer-duration papers. If successful, it could pave the way for more such issuances. Let's hope the timing is right.
S

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