RBI Announces Massive ₹34,000 Crore Government Security Auction Set for August 28, 2026
The Reserve Bank of India (RBI) has formally announced a significant underwriting auction for the sale and re-issue of Government Security (GS). This major transaction is scheduled to take place on Friday, August 28, 2026. The auction involves a security maturing in 2036 with an interest rate of 6.94%.The RBI confirmed that the total value of this Government Security available for subscription amounts to ₹34,000 crore. This public offering aims to tap into the institutional market for capital stability and debt management.
Auction Details and Bidding Procedures
The underwriting auction will be conducted utilizing a multiple price-based method. Primary Dealers (PDs) are the designated participants in this process.As per the commitment scheme established on November 14, 2007, specific commitment levels have been set for participating PDs. The Minimum Underwriting Commitment (MUC) required from each PD is stated at ₹810 crore.
Furthermore, under the Additional Competitive Underwriting (ACU) auction mechanism, the minimum bidding commitment mandated per Primary Dealer is also specified as ₹810 crore. These commitments underscore the seriousness of the state's financial obligations.
Mechanism for Primary Dealers
Primary Dealers must submit their bids electronically through RBI's Core Banking Solution (CBS), known as the e-Kuber system. This digital process streamlines market participation and record keeping.The allotted time window for PDs to submit their ACU auction bids is strictly defined. Bidding will be conducted between 09:00 A.M. and 09:30 A.M. on the day of the underwriting auction, August 28, 2026.
Financial Commitments and Commission Structure
The successful conclusion of this auction ensures crucial funding for the Government of India's fiscal needs. The specific security being auctioned is identified as the 6.94% GS 2036.A key operational detail relates to the underwriting commission associated with the transaction. This commission will be credited directly to the current account of each participating PD within RBI on the official date of the security issue.
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