RBI Greenlights Massive Underwriting Auction: Primary Dealers Face ₹34,000 Crore Opportunity for 6.94% GS 2036
The Reserve Bank of India (RBI) has announced a major underwriting auction, offering a significant opportunity for primary dealers (PDs). The Central Bank will conduct the sale (re-issue) of Government Security, totaling ₹34,000 crore on July 03, 2026. This high-stakes auction is set to be conducted through a multiple price-based method, targeting active participation from all designated Primary Dealers.Defining the Opportunity for Investors
The securities being offered are the 6.94% Government Security (GS) maturing in 2036. The total notified amount for this security tranche stands at ₹34,000 crore. This sale underlines the government's commitment to managing its debt portfolio through structured market mechanisms.This specific offering is designed under the extant scheme of underwriting commitment established on November 14, 2007. It provides a clear framework for PDs to commit capital against the Government Security tranche.
Commitment Requirements for Primary Dealers
The auction mandates specific minimum commitments from each participating Primary Dealer (PD). These requirements ensure structured and committed participation in the sale process.For the underwriting commitment, the Minimum Underwriting Commitment (MUC) per PD has been set at ₹810 crore. Furthermore, under the Additional Competitive Underwriting (ACU) auction structure, the minimum bidding commitment required from each PD is also specified at ₹810 crore.
Auction Procedure and Commission Details
The underwriting auction will take place on July 03, 2026 (Friday). Primary Dealers are instructed to submit their bids electronically using the RBI Core Banking Solution, known as the e-Kuber system.The bidding window for the ACU auction is strictly limited, running between 09:00 A.M. and 09:30 A.M. on the day of the underwriting auction.
Following the successful issue of the security, the underwriting commission associated with this transaction will be directly credited to the current account of the respective PDs by RBI on the official issue date.
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