RBI Announces Underwriting Auction for Rs 28,000 Crore Government Securities
The Reserve Bank of India (RBI) will conduct an underwriting auction for the sale and re-issue of Government Securities (G-Secs) worth Rs 28,000 crore this week, as per a statement released by the central bank on Wednesday. The auction is scheduled for June 25, 2026, and aims to facilitate the government's borrowing program.
The government has announced the sale (re-issue) of two securities: the 6.68% Government Stock 2040 and the 7.43% Government Stock 2076. The notified amounts for these securities are Rs 17,000 crore and Rs 11,000 crore, respectively. The underwriting auction will follow the extant scheme of underwriting commitment notified on November 14, 2007.
Minimum Underwriting Commitment Details
For the 6.68% GS 2040, the Minimum Underwriting Commitment (MUC) per Primary Dealer (PD) stands at Rs 405 crore. The minimum bidding commitment per PD under the Additional Competitive Underwriting (ACU) auction is also set at Rs 405 crore. For the 7.43% GS 2076, the MUC amount per PD is Rs 262 crore, with the same amount as the minimum bidding commitment under ACU auction.
The underwriting auction will be conducted using a multiple price bidding method. Primary Dealers can submit their bids electronically through the RBI's e-Kuber platform between 9:00 AM and 9:30 AM on the day of the auction. The release stated, "The underwriting auction will be conducted through multiple price-based method on June 25, 2026 (Thursday). 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."
Underwriting Commission and Settlement
The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of securities, the release added. This process ensures timely payment to primary dealers for their commitment to underwrite the government securities.
The auction is part of the government's regular borrowing program to meet its fiscal requirements. The RBI conducts such auctions periodically to manage the government's debt and ensure liquidity in the bond market.
