RBI to Conduct Rs 32,000 Crore Government Securities Auction

The Reserve Bank of India is set to auction Rs 32,000 crore in government securities this Friday. The auction involves the re-issue of two bonds, with an option for additional subscription. Bids are accepted through the RBI's e-Kuber system with both competitive and non-competitive bidding options available.

The Reserve Bank of India (RBI) is poised for a significant auction this Friday, offering Government of India dated securities totaling Rs 32,000 crore. The auction features the re-issue of two bonds: Rs 21,000 crore of the 6.36% GS 2031 maturing on February 16, 2031, and Rs 11,000 crore of the 7.71% GS 2066, maturing on May 18, 2066. An additional subscription option of up to Rs 2,000 crore for each security is available.

The sale will be conducted via the RBI Mumbai Office using a multiple price method. Electronic submissions are required on the RBI's Core Banking Solution, known as the e-Kuber system. Non-competitive bids will take place from 10:30 a.m. to 11:00 a.m., with competitive bidding open between 10:30 a.m. and 11:30 a.m. Results will be announced the same day, with successful bidders expected to make payments by July 13, 2026. Primary Dealers may submit bids for the Additional Competitive Underwriting portion from 9:00 a.m. to 9:30 a.m. on July 10, with a minimum bid size set at Rs 10,000.

The securities are eligible for "When Issued" trading from July 7 to July 10 and for repo transactions under existing RBI guidelines. Interest payments will generally be semi-annual, as outlined in specific notifications. The auction operates under a general notification dated March 26, 2025, with non-resident investments adhering to the Fully Accessible Route guidelines. The RBI retains the right to accept or reject bids at its discretion without needing to provide justification. (ANI)