The Reserve Bank of India (RBI) on Friday notified an underwriting auction for government securities worth ₹32,000 crore, comprising both a fresh issuance and a re-issue of long-term bonds.
The auction includes a new Government Security (GS) maturing in 2040 and a re-issue of the 6.90% GS maturing in 2065, each carrying a notified amount of ₹16,000 crore. These securities will be sold via a competitive bidding process through Primary Dealers (PDs), the central bank announced.
“The underwriting auction will be conducted through a multiple price-based method on July 4, 2025 (Friday). PDs may submit their bids electronically via the E-Kuber system,” the RBI stated.
The purpose of an underwriting auction is to ensure full subscription of government bond issuances, particularly during times of uncertain market demand. In this process, Primary Dealers act as underwriters, committing to purchase any unsold portion of the bonds, thus providing stability to the borrowing process.
Under the Minimum Underwriting Commitment (MUC) scheme, each PD must underwrite at least ₹381 crore per security and place bids of the same amount in the Additional Competitive Underwriting (ACU) auction.
The RBI also confirmed that the underwriting commission—the fee paid to PDs for their participation—will be credited to their accounts on the day the securities are issued.
This auction is part of the Government of India’s routine borrowing program, and it underscores the RBI’s key role in maintaining efficient operations in the domestic debt market.
