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Key Points

The Reserve Bank of India (RBI) is reissuing two Government of India securities worth a total of Rs 32,000 crore as part of its regular borrowing program. These bonds include the 6.92% government security maturing in November 2039 and the 6.90% security maturing in April 2065. The auction will be conducted on June 6, 2025, through RBI's e-Kuber system, allowing both competitive and non-competitive bids. Investors, including retail participants, can avail of this secure investment opportunity, contributing to the RBI's ongoing debt management.

Key Points: RBI Reissues Govt Bonds Worth Rs 32000 Crore for Debt Management

  • RBI to reissue two govt securities totaling Rs 32000 crore
  • Auction set for June 6, 2025, via e-Kuber system
  • Retail investors can access through RBI Retail Direct platform
3 min read

RBI announces reissue of two Govt securities worth Rs 32000 crore

RBI announces reissue of Rs 32000 crore government bonds as part of borrowing strategy.

"This auction is part of the RBI's regular debt management process. - RBI Announcement"

Mumbai, June 3

The Reserve Bank of India (RBI) has announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore.

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 two securities being re-issued are the 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.

Additionally, the RBI has kept the option open to accept up to Rs 2,000 crore extra for each security, depending on market demand.

According to the RBI's announcement on Monday, the auction will be held on Friday, June 6, 2025. The settlement, when investors make payments and receive the securities, will take place on Monday, June 9, 2025.

The sale will be conducted through the RBI's Core Banking Solution system, known as e-Kuber. Both competitive and non-competitive bids can be submitted electronically on the day of the auction.

Non-competitive bids will be accepted between 12:30 p.m. and 1:00 p.m., while competitive bids can be submitted between 12:30 p.m. and 1:30 p.m.

The auction will follow a multiple price method, meaning successful bidders will receive the securities at the prices they quote.

The central bank also stated that primary dealers can bid for underwriting a part of the issue through the Additional Competitive Underwriting (ACU) facility. These bids will be accepted from 10:30 a.m. to 11:00 a.m. on the same day.

The securities will be available for "When Issued" trading from June 3 to June 6, allowing early trading before the official issuance. Retail investors can also participate through the RBI Retail Direct platform.

Moreover, 5 per cent of the notified amount is reserved for eligible individuals and institutions under the non-competitive bidding scheme. This auction is part of the RBI's regular debt management process and offers a secure investment opportunity to investors.

The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed.

The official GDP growth data for the January-March (Fourth quarter) also showed that the economy grew 7.4 per cent during the quarter.

During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively.

- ANI

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Reader Comments

R
Rajesh K.
Good move by RBI to maintain liquidity in the market. With GDP growth at 6.5%, these long-term bonds at ~7% interest look attractive for conservative investors like me. Better returns than FDs! 👍
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Priya M.
The 2065 maturity bond is interesting but 40+ years is too long for retail investors. RBI should focus more on medium-term securities (5-10 years) that common people can relate to. Still, good to see retail participation options through RBI Direct.
A
Amit S.
₹32,000 crore is huge! Hope this money gets utilized properly for infrastructure projects. Last time I checked, our debt-to-GDP ratio was manageable but we need transparency in how these funds are deployed. #AccountabilityMatters
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Neha T.
As a small investor, I appreciate the 5% reservation for non-competitive bids. The e-Kuber system makes it convenient too. Just wish the RBI would simplify the process further for first-time bond buyers like me. The terminology can be confusing!
S
Sanjay R.
With quarterly GDP growth fluctuating between 5.6-7.4%, these bonds provide stability in uncertain times. The "When Issued" trading facility is a smart move - allows market to price them efficiently. RBI doing decent job managing debt.
K
Kavita D.
The interest rates are decent but barely beat inflation. I'd rather invest in equity for long-term. However, for my parents' retirement corpus, these G-Secs make sense. Different strokes for different folks! 💸

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