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Key Points

The RBI has announced the reissue of government securities worth Rs 27,000 crore in two tranches. The auction includes Rs 15,000 crore at 6.75% (2029) and Rs 12,000 crore at 7.09% (2054). Bids will be submitted electronically via RBI’s E-Kuber system on June 20. This move is part of the government’s ongoing borrowing strategy.

Key Points: RBI Reissues Rs 27000 Crore Govt Bonds in Two Tranches

  • RBI reissues Rs 27,000 crore in govt bonds
  • Two tranches—Rs 15,000 crore (2029) & Rs 12,000 crore (2054)
  • Auction via RBI E-Kuber on June 20
  • Part of regular govt borrowing program
2 min read

RBI announces reissue of Govt securities worth Rs 27000 crore in two tranches

RBI announces reissue of Rs 27,000 crore government securities in two tranches—Rs 15,000 crore at 6.75% and Rs 12,000 crore at 7.09%.

"The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m. – RBI"

Mumbai, June 17

The Centre has announced the sale (re-issue) of government securities totalling Rs 27,000 crore, according to information provided by Reserve Bank of India (RBI).

The auction will be split into two tranches of Rs 15,000 crore at 6.75 per cent Government Security (GS) maturing in 2029, and Rs 12,000 crore at 7.09 per cent GS maturing in 2054, the Finance Ministry notification said.

Additionally, the Centre will have the option to retain subscriptions of up to Rs 2,000 crore against the above securities.

A "re-issue" means the RBI is selling more of a bond that is already available in the securities market. This move is part of the government's regular borrowing program.

The auction will be conducted by the Reserve Bank of India, and the bids for the auction should be submitted in electronic format on the Reserve Bank of India Care Banking Solution (E Kuber) system on June 20, 2025.

"The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m."

The result of the auction will be placed on the Reserve Bank of India on its website (www.rbi.org.in) on June 20, 2025 and the successful bidder will have to make payment on June 23, 2025 i.e. the date of re-issue.

Furthermore, Interest will accrue on the nominal value of the Securities from the date of original issue or last coupon payment will be paid off half yearly. The Securities will be repaid at par on the date of maturity.

Earlier this month, the Reserve Bank of India also announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore. The two securities were re-issued at 6.92 per cent Government Security (GS) maturing on November 18, 2039, and the 6.90 per cent GS maturing on April 15, 2065. Each of these bonds will be issued for Rs 16,000 crore.

- ANI

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Reader Comments

Here are 6 diverse Indian perspective comments for the RBI securities re-issue news:
P
Priya K.
Good move by RBI to maintain liquidity in the market. The 2054 bond at 7.09% looks attractive for long-term investors like pension funds. Hope retail investors also get easier access to such instruments through digital platforms. 🇮🇳
R
Rahul S.
With inflation around 5%, these bonds barely offer 2% real returns. The government should consider higher rates to make them more appealing to common investors. Otherwise, people will keep parking money in gold and real estate.
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Anjali M.
The transparency in the auction process is commendable. The E-Kuber system has made government securities more accessible. My father used to say in the 90s, only big players could participate in such auctions. Now even small investors can try their luck!
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Sanjay P.
Hope the government uses this money wisely for infrastructure rather than populist schemes. We need more expressways and renewable energy projects, not freebies before elections. The 2054 bonds mean our grandchildren will be paying for today's spending!
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Neha T.
As a working professional, I find these bonds too complex to understand. RBI should run awareness campaigns explaining how government securities work in simple terms. Most millennials like me only know about FDs and mutual funds.
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Vikram J.
The timing is interesting - just before the next fiscal quarter. Banks will likely lap these up to meet their SLR requirements. For retail investors, the 2029 bond might be better given the uncertainty over such long durations. What if interest rates rise further?

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