RBI to Hold Underwriting Auction for ₹32,000 Crore G-Secs on June 12

The Reserve Bank of India (RBI) has announced an underwriting auction for the sale of government securities worth ₹32,000 crore on June 12, 2026. This auction will include the re-issuance of two securities: ₹21,000 crore of 6.36% GS 2031 and ₹11,000 crore of 7.71% GS 2066.

As per the underwriting framework notified in 2007, Primary Dealers (PDs) are required to meet specific commitments. Each PD must undertake a Minimum Underwriting Commitment (MUC) of ₹500 crore for the 6.36% GS 2031 and ₹262 crore for the 7.71% GS 2066. Additionally, PDs must bid for the same amounts under the Additional Competitive Underwriting (ACU) auction.

The auction will follow a multiple price-based method and will be conducted electronically via the RBI’s e-Kuber system. PDs can submit their bids between 9:00 AM and 9:30 AM on June 12, 2026. Successful bidders will receive their underwriting commission directly in their RBI current accounts on the day the securities are issued.

Underwriting auctions are a critical mechanism for ensuring smooth government borrowing. They allow the government to raise funds while providing PDs with an opportunity to earn commissions. This auction is part of the government’s broader borrowing program for the fiscal year.

The announcement underscores the RBI's role in managing government debt and ensuring liquidity in the financial system. PDs play a key role in supporting this process by underwriting and distributing government securities.

Source: Reserve Bank of India press release, Thu, 11 Jun 2026 11:30:00. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62914