RBI fixes underwriting commission rates for Rs 32,000 crore government securities auction
Mumbai, July 17
The Reserve Bank of India has fixed the underwriting commission cut-off rates for three government securities carrying a combined notified amount of Rs 32,000 crore.
"In the underwriting auction conducted on July 17, 2026, for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rate for underwriting commission payable to Primary Dealers," the RBI said on Friday.
For the 6.03 per cent Government Security 2029, which has a notified amount of Rs 11,000 crore, the RBI fixed the underwriting commission cut-off rate at 0.44 paise per Rs 100.
The Minimum Underwriting Commitment for the security stood at Rs 5,502 crore, while an additional competitive underwriting amount of Rs 5,498 crore was accepted.
For the 6.68 per cent Government Security 2033, also carrying a notified amount of Rs 11,000 crore, the commission cut-off rate was set at 0.34 paise per Rs 100. Its Minimum Underwriting Commitment was Rs 5,502 crore, with another Rs 5,498 crore accepted through additional competitive underwriting.
The RBI fixed the highest commission cut-off rate of 0.62 paise per Rs 100 for the 7.24 per cent Government Security 2055. The security has a notified amount of Rs 10,000 crore, comprising a Minimum Underwriting Commitment of Rs 5,019 crore and an accepted additional competitive underwriting amount of Rs 4,981 crore.
Together, the three securities carry a Minimum Underwriting Commitment of Rs 16,023 crore, while Rs 15,977 crore was accepted under additional competitive underwriting.
"Auction for the sale of securities will be held on July 17, 2026," the central bank said.
— ANI
Reader Comments
As someone tracking bond markets, the underwriting commission rates are pretty standard. The 2055 bond with highest rate (0.62 paise) shows longer duration securities need extra incentive for primary dealers. Makes sense mathematically.
RBI is playing safe but why are we borrowing so much? Rs 32,000 crore in one go... our fiscal deficit is already stretching. Hope the new government after 2026 focuses on revenue generation rather than just debt 😕
The Minimum Underwriting Commitment of Rs 16,023 crore shows RBI is ensuring primary dealers don't walk away lightly. This protects the auction process. Standard procedure, nothing alarming.
My only concern: 7.24% for 2055 bond seems high. If inflation stays above 5%, that coupon might not attract enough buyers in future auctions. Let's hope RBI manages liquidity well 🙏
As a small investor, I'd love to understand how this affects us common people. Does this mean banks will earn more or will interest rates change? I just want my fixed deposit rates to stay decent 😅
The 0.44 paise for 2029 bond vs 0.62 for 2055—
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